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EVERYTHING’S GONE GREEN SUSTAINABILITY RISES TO THE TOP OF THE BUSINESS AGENDA LOOKING FORWARD TO EPCA’S ANNUAL MEETING CAPACITY TRIES TO CATCH UP WITH DEMAND WHAT WP15 HAS IN STORE FOR THE NEXT ADR

T H E

I N F O R M AT I O N

D A N G E R O U S

S O U R C E

G O O D S

F O R

T H E

I N T E R N AT I O N A L

P R O F E S S I O N A L

S I N C E

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UP FRONT 01

EDITOR’S LETTER

As a professional writer, I tend to notice linguistic novelties and

the supply chain, all around the world. Fortunately, they mostly

tics. New words, or old words used in new ways, stand out to

arrive on my desk in electronic format, which at least saves

me. And this year’s new old word seems to me to be ‘reset’.

millions of trees and millions of tonnes of printing ink.

That doesn’t mean ‘reset’ as in “turn it off and back on

Look also at the agenda for this month’s Annual Meeting

again”, nor even ‘factory reset’, that rather alarming option

of the European Petrochemical Association (EPCA), where

that I have never dared to do to my smartphone or computer.

virtually every presentation, forum, interview and workshop

Instead, it refers to an idea that the human world and its global

covers topics related to sustainability, from the circular

economy needs to stop, think and do things differently from

economy, waste-to-energy, plastics pollution and alternative

now on – assuming that we want a world that we can continue

energies all the way to recruiting and training the diverse

to live on comfortably.

and young workforce that will need to implement this very

Another word that has been appearing more often of late is ‘pivot’, used as a verb to suggest that organisations need to

different way of operating. This year’s EPCA Annual Meeting is once again taking place

take a sharp turn away from their current course and head

in the virtual world, which at least saves all the air miles

in a different direction, behaving in a way that benefits the

involved in getting thousands of petrochemical and supply

world and all who live on it, and not just their shareholders.

chain executives in the same place at the same time. It is not

These concepts are both part of the broader idea of

such good news for all those hoteliers and restauranteurs

‘sustainability’, something that corporations around the world

(and their staff) who would otherwise be looking forward to

are increasingly building into their strategies, often adding

something of a bonanza – but then I suppose we have to stop

a chief sustainability officer (CSO) to the C-Suite. HCB is

and think (and reset our minds) whether their business model

following the trend: this month’s issue has a whole section

is sustainable in today’s new world?

devoted to the topic – indeed, many of the other articles

That is a question that we will all need to ask ourselves.

also tip their hat in that direction. Even the regulators are

And while the answer might right now be a matter between

at it: WP15, for example, is currently trying to figure out how

you and your conscience, at some point in the future – and it

to regulate the use of electric vehicles in the transport of

may not be that far away – arrangements are likely to be made

dangerous goods under ADR.

so that an organisation that is not environmentally sustainable

You don’t have to take my word for all this: just look at all the Sustainability Reports and Environmental and

will not be financially sustainable either. Well, someone is going to have to pay for all this, after all.

Social Governance (ESG) Reports flowing out of corporate communications departments at companies up and down

Peter Mackay

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UP FRONT 03

CONTENTS VOLUME 42

•

NUMBER 09

UP FRONT Letter from the Editor 30 Years Ago Learning by Training

01 04 05

EPCA SPECIAL SUPPLEMENT We’ll meet again Looking forward to the EPCA Annual Meeting 07 Regroup, reflect Caroline Ciuciu reimagines the future 12 Connecting the dots Interview with Dirk Verstraeten 17 We the people What the supply chain members think 22 SUSTAINABILITY Must do better Counting Europe’s maritime impact Nudge nudge BSM aims to improve behaviour Faith in future fuel HGK plans hydrogen-fuelled barges Water stuff Rotterdam builds hydrogen supply chain Multifunction room LNG terminals have a wider role

32 34 35 36 38

TSA INSIGHT Supplement featuring the latest quarterly issue of the Tank Storage Association’s magazine

Terminals can help carbon sequestration Ahead of the pack Hoyer leverages hydrogen expertise Good for you Odyssey sees profit in the planet Sustainability begins at home Fort Vale designs for efficiency TANKS & LOGISTICS We reap what we sow M&S’s David Kew calls for foresight Spinning plates Sahreej keeps them all in the air Cold track VTG trials LNG chain Talking with Talke Alfred Talke makes moves on Asia Back on track Hupac helps the modal shift News bulletin – tanks and logistics STORAGE TERMINALS Over to you Evos buys Oiltanking sites Step ashore CLIIN comes to onshore tank cleaning Chemistry lessons Antwerp fosters collaboration News bulletin – storage terminals TANKER SHIPPING Steaming slower VLGC market takes a breather

SUSTAINABILITY Back in the ground

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

Commercial Director Marc Freed Email: marc.freed@hcblive.com Tel: +44 (0) 208 371 5136

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

39 40

Pressure pointers BWEK dominates in small gas ships Swing time Odfjell identifies difficulties

66 68

42 44

47 48

COURSES & CONFERENCES Back in business ChemUK a roaring success Conference diary

70 71

SAFETY Incident Log Hold tight Alert on containers in bulkers

72 74

50 51 52 54

REGULATIONS In the fast lane WP15 hurries to ready ADR revisions Playing catch up PHMSA’s harmonisation rule Taking flight IATA’s 2022 DGR BACK PAGE Not otherwise specified

76 84 87

58 60 62

Production Manager Alessandra Rossi Email: a.rossi@hcblive.com Tel: +44 (0) 208 371 4032 Managing Editor Stephen Mitchell Email: stephen.mitchell@hcblive.com Tel: +44 (0) 208 371 4045

NEXT MONTH Road tankers in Europe International industrial packaging markets Tank container depots

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 1991 By October 1991, today’s reader of what we wrote in HCB 30 years ago will find some familiar stirrings. The industry was beginning to take the shape we see around us today, with a more professional approach to safety, quality and environmental protection. We even reported on an amazing new system to verify the acceptance of dangerous goods aboard containerships, developed by US-based liner operator Sea-Land (now part of Maersk). The report is clouded somewhat by mention that the “personal computer program’ will run on any IBC-compatible PC. Elsewhere, there had been talk of developing a single safety audit for land and sea carriage and storage terminals, operated by an independents party for the benefit of the chemical industry as a whole. The idea, which was sound, was that such a system would replace the multiple safety certifications of logistics companies, a fragmented, non-standardised, duplicated and unequally shared system that imposed a great burden on operators. The idea was part of the International Chemical Environment (ICE) project developed by EPCA and Cefic, which was also to develop an EU-wide emergency response network. Alert readers may have spotted that this was the birthplace of SQAS, along with CDI for

the days when that was separate from the Annual Meeting held in September. The overriding issue was the economy, which had been battered by the fallout from the Asian financial crisis. We reported on falling profits among the major chemical companies, something that inevitably impacted on what they were prepared – or able – to pay for their logistics needs. Thomas Hoyer, in fact, told us that “chemical transport in Europe is still much too cheap”. There will probably be many in the business who would say the same of today’s market. Also familiar were concerns about the railways, despite some fine talk from governments about shifting freight off the roads. But we reported on rising costs, echoing Hoyer’s words, and problems with terminal capacity, which needed “urgent debottlenecking” in the opinion of some. And European operators had something else to worry about: the impending arrival in 1992 of the single European market, although most tank transport companies seemed to feel that it was not going to change much. “The move towards a post-1992 single market is one that has been underway for several years now,” said Huktra’s Roland van Poucke. “Barriers of the past, such as customs, languages and national conservatism, are losing influence so that today’s transport

tankers and terminals, an idea so good that it has been taken up elsewhere in the world, including the Middle East and China, as a way of monitoring the safety and quality performance of those responsible for moving dangerous goods around. But this was the October issue and, as today, the 1991 number was packed with information on what was going on in Europe, to coincide with EPCA’s annual logistics meeting in Monte Carlo, in

company needs to adopt a multinational approach and attitude.” Others spoke about the likely opportunities to arrive from eastern Europe, following of the collapse of the Soviet bloc, although progress had been slow as the economies of those countries struggled to match their peers to the west. That international outlook has served Europe well over the past thirty years – hopefully we can say the same in another thirty years.

HCB MONTHLY | OCTOBER 2021

UP FRONT 05

LEARNING BY TRAINING by Arend van Campen

ACHIEVING SUSTAINABILITY The debate about climate change, Covid-19 virus control, people marching in the street, energy transition, CO2 emissions, our unsustainable way of life – these are all hot topics in the news, because we all watch the houses being burnt down to the ground all over the world and we observe global risks everywhere. As a researcher on what can be sustainable and what can’t be, I designed a new course for all of you reading HCB, working in our industries and beyond. This course – Sustainable Systems and Organisation Design focuses on enhancing the ability of people not only to manage and govern organisations, companies or society, but to (re-)design them according to natural laws, science and common sense. It will challenge participants to use their limitless creativity. Current man-made industries, governments and geopolitical organisations are often non-viable systems and potentially harmful because they overlook the reality of dynamic complex systems that can only be governed, steered and be kept in equilibrium by real-time information. This can be changed by insight, sciences, common sense, etc: that is, by ‘Information’ and the understanding of systems sciences and cybernetics as the sciences of governance and control of man and the machine. Cybernetics is an overlooked method to reach goals without harming

will hand you, you will be able to maintain course in business and life within the boundaries of functionality. If fact, all we have to do is to copy nature - simple, easy! The beauty is in truth and simplicity.

others and yourself. It is a myth that technology will provide a way out of the current human and ecological predicament by itself. You, me and everyone will have to stay in control and ‘steer’ the transition by feedback within the limitations of reality which I term ‘Realimiteit’. By understanding what reality, sustainability or continuity means, all we have to do is to understand how nature works and how it sustained life for billions of years. When you understand the tools this course

world is. Everything is Information, learn to see that information is a fundamental building block of our real and physical world.

LEARNING OUTCOMES With this information learned you will be able to design any system to be viable and be of long-term relevance without harm to social cohesion, the environment and human/non-human life. It will give you the tools, the sciences and the methods to change negative interdependent systems (benefiting a few, but at the costs of others) into positive interdependent systems (benefiting everyone and not being harmful) and to avoid ‘path dependence’. This will allow you to invest and profit for the long term. The course consists of 10 modules. As an example, here are two of them: Stafford Beer; building of viable systems: VSM. Viability depends on the ability to communicate, to exchange information and therefore to learn. The uncertainty principle ; information reduces uncertainty. The way we want our world to be is not the same as the way our

Those interested in learning more about this training course should contact Arend van Campen, founder of TankTerminalTraining, at arendvc@tankterminaltraining.com. More information on the company’s activities can be found at www.tankterminaltraining.com.

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EPCA SPECIAL SUPPLEMENT 07

WE’LL MEET AGAIN IT HAS BEEN A WHILE SINCE WE ALL SAT DOWN TOGETHER. EPCA IS OFFERING THE NEXT BEST THING AT THIS MONTH’S ANNUAL MEETING, ONCE AGAIN IN A VIRTUAL FORMAT

After what we have all been through over the past

in the lobby of the Intercontinental Hotel in Berlin,

18 months, it would be great to be able to sit

where thousands of eager attendees regularly mill

down together and talk it over. There have been

around waiting for their next appointment whenever

immense challenges, swift and unpredictable

the EPCA Annual Meeting is taking place.

shifts in trade patterns, and persistent difficulties with accessing capacity across the supply chain. Sadly, though, the effects of the pandemic are still with us, even though there is some light at the

DO THINGS DIFFERENTLY

While we look forward to being able to meet up

end of the tunnel. So far, there have been few

in person again next year, we can take heart from

opportunities to meet in person, although some

the efforts that EPCA has made in developing a

event organisers have braved the waters. But the

programme for this year’s virtual Annual Meeting,

European Petrochemical Association (EPCA)

which runs for three days starting 5 October.

decided some months ago to move its Annual

It promises to be more interactive than ever,

Meeting once again to a virtual format. That is

with debates and discussions and even a virtual

probably sensible: anyone who has ever attended

‘happy hour’ at the end of each day, and EPCA

the event would be only too aware that it is

is keen to attract a wider range of attendees,

impossible to observe social distancing measures

not just senior commercial personnel.

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As EPCA CEO Caroline Ciuciu explains, the enforced break demanded by the pandemic has offered the opportunity for all players in the

require a major adjustment away from the traditional patterns of doing business. As EPCA says, the transition towards a

SETTING THE SCENE

To illustrate the extent and quality of the programme EPCA has lined up for the Annual

petrochemical supply chain – including EPCA

climate-neutral, circular and sustainable society

Meeting, it will begin with an interview with Dr

itself – to sit back and reflect on what they are

will require additional technologies – with

Martin Brudermüller, chairman of the board of

doing, how they are doing it, and whether that

investment and innovations to match – which

BASF, who will look at the EU’s Chemical Strategy

way of operating will still be viable in the future, a

in turn require an optimal business environment.

and the response of the European chemical

future that will demand more of them in terms of

The Annual Meeting will aim to help that transition

industry, as well as the role of industry supplier

sustainable operations and the circular economy.

by bringing to the table a range of thought leaders

partnerships in a carbon-free future. That will be

In addition, the stresses in the transport chain

who are already involved in that transition,

followed by a CEO Forum with the participation

have reminded us all of the vital role that the

adapting their manufacturing, procurement and

of Vincent Clerc, CEO of Maersk Ocean and

supply chain provides and its reliance on people

supply chain strategies and practices to enable

Logistics, Klaus Schäfer, CTO of Covestro, and

– not least truck drivers – to operate efficiently.

an industrial renaissance in Europe and

Loic Vivier, senior vice-president, performance

elsewhere.

derivatives, of ExxonMobil Chemical. The three

So EPCA has given this year’s Annual Meeting the theme of ‘The future reimagined’. That prompts

Ultimately, Ciuciu believes, that transition

will talk about the big trends in the sector and

reflection but tinged with optimism and the belief

will demand a more holistic and profound

the outlook for international trade and the global

that the petrochemical industry is part of the

transformation: companies will need to define a

economy, taking questions in real time from the

solution, not the problem. The sector must have

new sense of purpose – as some already have –

virtual audience.

a major role to play in delivering the sustainability

and redefine their mission to create long-term

targets that are being demanded, but that will

value for a wider range of stakeholders.

HCB MONTHLY | OCTOBER 2021

HCB readers will be very interested in the following round-table discussion on ‘Supply Chain

EPCA SPECIAL SUPPLEMENT 09

Reimagined’, featuring Mark Noordhoek Hegt,

‘Sustainability Reimagined’. This will include a

will be crucial and will increasingly be linked to

CEO of NxtPort International, Ann Vereecke,

look at how public-private partnerships will be

environmental performance. Arkema, an EPCA

professor and partner at Vlerick Business School

key, and the need for leadership from the industry

member, last year successfully placed its first

and a long-time collaborator with EPCA, and Dirk

to focus on caring for people and the planet.

‘Green Bond’, dedicated to funding a new plant in

Verstraeten, senior expert logistics at Covestro

That will be followed by an interview with Jacob

and chair of EPCA’s Supply Chain Programme

Duer, president/CEO of the Alliance to End Plastic

Arkema’s CFO Marie-José Donsion will discuss

Committee. They will present the outcome of the

Waste, who will give his take on the sustainability

the benefits of such instruments and the

latest EPCA initiatives towards the sustainable

agenda and how collaboration between

necessary role of independent agencies to

development of the supply chain and also look

producers and brand owners is key to meeting

provide ratings against environmental and social

at how digitisation can help in that process.

the target of eliminating plastics pollution.

governance (ESG) measures. Also on the panel

The first day will finish with a conversation

Singapore to manufacture bio-based polyamides.

Another CEO Forum, featuring Diederick

will be Professor Dr Andreas Barckow, chair of

with Kate Johnson, head of sustainability and

Samsom, head of cabinet for the European

the International Accounting Standards Board

decarbonisation at Shell Chemicals Europe, and

Commission’s executive vice-president, Frans

(IASB), and Yair Reem, a partner in Extantia

a virtual happy hour immediately after.

Timmermans, will give the keynote speech, with

Capital and a member of EPCA’s Digital Advisory

industry responses from Dr Martin Brudermüller

Board.

and Neil Carr, president EMEA & India at Dow PAYING FOR SUSTAINABILITY

Day 2 will start with a conversation with Eelco Hoekstra, chairman and CEO of Royal Vopak, setting the scene for the day’s topic,

Boston Consulting Group (BCG) will then

Chemical, and a Q&A session moderated by

provide a highly interactive session on

regular chair Karin Helmstaedt.

sustainability transformation, based on its recent

Given the level of investment that will be needed to fund the transition, access to finance

publication Chemical Companies Need a Bold New Approach to Value Levers, published in

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April 2021 and available on EPCA’s Resource

a conversation with Gina Fyffe, CEO of Integra

Library. Markets for sustainable chemicals are

Petrochemicals and chair of EPCA’s Talents

onboard issues around diversity and inclusion

emerging but transformation will require massive

of Today, Leaders of Tomorrow Committee.

and a roundtable session will discuss the latest

investments, and a build-up of new capabilities

That will be followed by a curtain-raiser interview

progress within the EPCA community. It will

and technologies. Chemical companies that lead

with Jim Fitterling, chairman/CEO of Dow

feature Jeanne-Marie Bowman, vice-president

such transformation will emerge as winners in an

Chemical, who will discuss what will count as

and Chief Talent & DEI Officer at LyondellBasell,

industry that in balance will benefit from the

success in the medium to long term, responsible

Chantal Lorbeer, associate partner at McKinsey’s

discontinuities ahead, BCG says.

stakeholder capitalism, inclusive business

Munich office, Ingjerd Morland Nettestad,

The second day will finish with a conversation

strategies, workforce and future leaders as

vice-president of corporate HR at Odfjell, and

between Karin Helmstaedt and Katja Wodjereck,

well as corporate and individual leadership.

Hernan Rein, global director human resources

commercial director, EMEAI industrial solutions, at Dow Chemical.

Fitterling’s comments will feed into another CEO Forum, featuring Emmanuel Faber,

Personnel development will need to take

at Vopak. EPCA’s 55th Annual Meeting will conclude

former chair and CEO of Danone, Jacques

with a wrap-up conversation with Hartwig

Vandermeiren, CEO of the Port of Antwerp,

Michels, EPCA president and president of BASF,

PEOPLE POWER

and Jean-Marc Durand, senior vice-president,

followed once more by a virtual happy hour.

The final day on 7 October will look further

refining base chemicals Europe, at Total

ahead and reimagine the future of the European

Energies. Jan Arnet, Group CEO of Bertschi

process can be found on the EPCA website,

petrochemical industry. An important element

will also give his views on inclusive business

www.epca.eu. HCB will be there in virtual form

within that future will be access to new talent

strategies and the importance of developing

too and will report back on all the discussions

and it is no accident that the day will open with

future leaders.

in a forthcoming issue.

HCB MONTHLY | OCTOBER 2021

Full details of the programme and registration

REGROUP, REFLECT EPCA HAS SPENT THE LAST YEAR REIMAGINING HOW IT WILL WORK IN THE FUTURE. CEO CAROLINE CIUCIU EXPLAINS HER PLANS AND WHAT TO EXPECT FROM THIS YEAR’S ANNUAL MEETING

The European Petrochemical Association

regularly draws thousands of executives and

(EPCA) has, like its members, been faced with

managers each year.

some challenging times over the past 18 months.

However, as EPCA CEO Caroline Ciuciu

Last year, we heard stories of endurance, creativity and bravery in overcoming pandemic disruptions. We also got a strong sense of

Its raison d’être is to bring together players from

explains, that has simply not been possible since

commitment to the EU green transformation

across the petrochemical supply chain and to

the Covid-19 pandemic emerged last year. EPCA

agenda and learned about the necessary

help them navigate the changing business

proved very agile in pivoting to a virtual Annual

ingredients – from low carbon technology to

landscape as well as reflect on and embrace new

Meeting in 2020, with a somewhat more focused

chemical recycling - to enable our sector to play

trends in science, technology and society. This

event offering insights from captains of our

a key role in this fundamental transformation.

can most effectively be done through in-person

industry and thought leaders along with

events, most notably – but not solely – the EPCA

perspectives on the leading themes of the year,

the pandemic also gave the opportunity to reflect

Annual Meeting, held every October, which

'Beyond the New Normal'.

on EPCA’s actvites and how to adjust to the new

HCB MONTHLY | OCTOBER 2021

Still, it was clear that the pause presented by

EPCA SPECIAL SUPPLEMENT 13

normal. “We were very inspired by the situation,” Ciuciu says. “We had been talking about how to reinvent ourselves for some time but, like our members, we now had the space to reassess our mission and value offering to address the evolving needs of the European petrochemical industry.” This year, EPCA has decided to provide a much more extensive programme for the Annual Meeting, which runs from 5 to 7 October, once more in a virtual format. It is with a renewed passion that the EPCA team has delivered a very creative event programme with the brain-bursting slogan 'The Future Reimagined' and an unprecedented speaker line-up. There will be three full afternoon sessions with a broad offering of different format types, including curtain-raiser interviews and keynotes, CEO forums with live Q&A, strategic dialogue with external experts, and interactive workshops, not forgetting the all-important virtual happy hours. These will cover all the elements of the petrochemical sector, including its industrial

systems from manufacturing to distribution,

of the European Commission and cross-sectoral

supply chain, innovation and digitisation. In

industry thought leaders, we will reflect on this

addition, the programme goes beyond the

transformation through three main lenses:

traditional boundaries of the EPCA Annual

• Industry Reimagined,

Meeting with, for the very first time, emerging

• Sustainability Reimagined, and

topics such as sustainable finance and multi-

• Success Reimagined.

stakeholder capitalism, to name just a few..

The first aspect deals with what Ciuciu terms the ‘industrial transformation and, hopefully, renaissance’. To enable the smart and green

THINK ABOUT THE FUTURE

transformation of industry, companies are

The overriding theme of this year’s EPCA Annual

assessing how to redefined their sourcing,

Meeting is ‘Future Reimagined’. Last year’s

manufacturing, logistics and procurement

Annual Meeting reached the consensus that

processes. “The sustainable transformation has

industry is committed to playing its part in the

massive implications in terms of feedstocks,

sustainable transformation. Now, a year on from

energy supplies and infrastructures,” Ciuciu

our last conversation, the commitment is even

says. “Companies are revisiting their industrial

stronger. There is no question about the why!

processes and operating models in a kind of

The many questions that we hear emerging are

“industrial Meccano” to fit with future needs in

about the how!

a very different world.

Together, with more than 30 captains of our industry, technical experts as well as a representative

“I am convinced we need to be optimistic,” Ciuciu adds. “It goes beyond the notion of

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‘Industry 4.0’ and the petrochemical industry

The third and final aspect, ‘success

other departments. This more varied perspective

can play a leading role in the sustainable

reimagined’, will offer a broader perspective on

is part of EPCA’s efforts to transfer knowledge.

transition.”

the transformation our industry is going through.

"Every department of an organisation needs to

Beyond transforming its industrial processes

be involved in this massive transformation,”

how can petrochemicals play a leading role

and operating models to embrace the green

she adds. "We all have a part to play in this -

in promoting sustainability and reducing CO2

transformation, the petrochemical industry is

from leaders in the public and private sectors

emissions, as many companies across the

also actively engaged in a more holistic and

to all the talents who are part of the EPCA

industrial sectors have pledged to do. Reducing

profound transformation. Companies are

community. We want more people to join the

and dealing with plastics waste is another

reflecting on their purpose and redefining their

conversation.”

environmental challenge the petrochemical

mission, increasingly embedding ESG into the

sector is well placed to deal with.

fabric of their culture and operating models.

Secondly comes ‘sustainable reinvention’:

“There are lots of ideas and projects coming

The role of the board of directors in re-imagining

HERE ALL YEAR

forward,” Ciuciu says. “The transition to a circular,

success, as well as the initiative required to

carbon-neutral and sustainable society will require

attract, develop and retain the leadership, talent

stresses. “We want a year-round presence and

additional technologies with investment and

and skills needed to drive ESG strategy and

to offer ongoing value to members.” Just as

innovations to match, which in turn requires an

outcomes will be discussed.

many EPCA member companies have started to

optimal business environment.” Sustainable finance is also becoming more

This enriched programme reflects a decision to open up the Annual Meeting to a wider

“EPCA is not just the Annual Meeting!” Ciuciu

change their purpose, EPCA is also revisiting its purpose to offer added value to its members.

important and this will be addressed in a

audience. “The Annual Meeting programme

panel discussion bringing together the CFO of

used to be designed for the community of

approach will be information and access to it,

Arkema, the chair of the International Accounting

business members,” Ciuciu explains. “Now we

and that points to a greater role for digitised

Standards Board (IASB) and a representative of

want to offer a valuable programme for a more

systems. This is an area where EPCA has been

a venture capital investor. “With this session, EPCA

diverse audience,” including managerial and

working hard for some time, seeking to establish

is taking a new approach: looking at a particular

operational people from the supply chain, investor

how its members and their supply chain partners

issue through various lenses," Ciuciu explains.

relations, sustainability, HR, communications and

are moving along the digitisation journey and to

HCB MONTHLY | OCTOBER 2021

One important factor in achieving this new

provide help and advice on how better to take

this year already held a working session in

done.” This initiative is being driven by Gina Fyffe,

advantage of the opportunities available.

June to promote the active sharing of ideas

CEO of Integra Petrochemicals, who recently

on CO2 reduction across the petrochemical

took on the chair of EPCA’s Talents of Today,

industry and its supply chain, seeking to identify

Leaders of Tomorrow group created in early

progress with digitisation; that collaborative journey

measures by which industry as a whole can

2020 after merging the former YETT and TDIC

has continued, and continues to do so. Since

address the challenges. What is feasible, and

to increase synergy and impact. The main

2019, work has also been looking at how digitisation

will it be meaningful for the whole industry?

findings of this new study will also be shared

can help the push for sustainability. “We want to

The outcomes of this discussion will be shared

during the Annual Meeting.

talk this year about how that can help the supply

during the Annual Meeting.

EPCA began working with Vlerick Business School (VBS) in 2017, initially to benchmark the

chain be more sustainable and provide for the

A second workshop was held in September

It certainly seems that EPCA has thought long and hard about the content and format of this

circular economy,” Ciuciu says. “We need to

on eco-efficiency and circularity, again feeding into

year’s second virtual Annual Meeting. “This is the

understand what is going on in that area.”

discussions during the Annual Meeting; VBS’s Ann

richest programme in the history of EPCA,” Ciuciu

Things are moving quickly, as Ciuciu adds:

Vereecke and Covestro’s Dirk Verstraeten, chair

says, praising the great work of the EPCA team.

“Industry now has a level of maturity in digitisation

of EPCA’s Supply Chain Programme Committee

that wasn’t there five years ago.” One important

(SCPC), will offer insights and seek feedback from

in the past has been the days of networking

element is the move from linear processes to

attendees, after which SCPC and the EPCA board

opportunities that it offers and EPCA has tried

the engineering of dynamic integrated systems.

of directors will look at how members’ opinions

to mirror that in this year’s virtual session, with

“EPCA can connect all the different players

can inform work over the coming year.

virtual happy hours at the end of each day.

One important aspect of the Annual Meeting

and enable real collaboration to find better

EPCA is also updating the study on gender

ecosystems and platforms,” she explains.

diversity carried out by McKinsey in 2015; “This is

regroup, reflect with positivity and optimism” and

now being revisited,” Ciuciu says. “We want to

to prepare the industry for the great transformation

see what has evolved and what still needs to be

it will face in the post-pandemic world.

Proving Ciuciu’s point about being a year-long source of guidance and information, EPCA has

HCB MONTHLY | OCTOBER 2021

As Ciuciu concludes, this is the “time to

EPCA SPECIAL SUPPLEMENT 17

CONNECTING THE DOTS THE PETROCHEMICAL SUPPLY CHAIN HAS A CRUCIAL POSITION IN THE SEARCH FOR SUSTAINABILITY IN THE SECTOR; DIRK VERSTRAETEN, CHAIR OF EPCA’S SUPPLY CHAIN PROGRAMME COMMITTEE, EXPLAINS THE ISSUES

As he nears the end of his three-year term as

“Digitisation has arrived as part of the corporate

regional authorities have pledged to deliver on

chair of the European Petrochemical Association’s

strategy,” Verstraeten says, although there is

promises of decarbonisation and the coming

(EPCA) Supply Chain Programme Committee

more work to be done. Standardisation and the

energy transition, hence the growing interest

(SCPC), Dirk Verstraeten, senior expert logistics

availability of neutral platforms still have gaps,

in hydrogen as a fuel and power source.

at Covestro Deutschland, can reflect on a hectic

which hamper the delivery of the full potential of

“Everybody’s talking about it,” Verstraeten

period during which EPCA strove to help its

digitised systems.

says, “and a lot are doing something."

members navigate the rapidly changing business landscape. That effort has involved three inter-connected

The second strand is sustainability, an area

The final strand is the circular economy and

where, Verstraeten says, “there are amazing

the need to transform industrial operations for the

things going on”, pointing to the example of one

next generation. This is where the supply chain

strands. Firstly, the increasing availability and

of the leading ocean carriers’ recent order for

will play a pivotal role, as goods (particularly

adoption of digital processes has helped propel

methanol-fuelled containerships. There is a lot

plastics) will have to be collected and returned

the industry towards a fully integrated world.

of funding available, too, as governments and

after use, for conversion into other goods.

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Refiners are already adapting in response to the challenge, Verstraeten says, and terminals are re-tooling to be able to handle the growing volume of bio-based material flowing through their tanks. Petrochemical and chemical producers will also need to reposition themselves and the supply chain will have to be ready to deal with new products and changing flows of material. While this seems like a quantum leap in the industrial process, it will be delivered through a series of smaller, individual initiatives combined with efforts to bring all value providers closer

Pic - Michael Rennertz

together, Verstraeten thinks.

COLLABORATION NEEDED

During the course of 2021, EPCA has sought to help its members to position themselves appropriately to meet these challenges, organising two workshops for the exchange of information, with a particular emphasis on bringing in expertise from outside the immediate

trust and verifiable information, which will have

Ambrosecchia notes that this event had

petrochemical sector. The first of these, which

to lean on the expertise of IT specialists.

participation from downstream users, waste

was held this past June, looked at sustainability and eco-efficiency and highlighted the need for

HCB MONTHLY | OCTOBER 2021

The second workshop looked at the circular economy. EPCA’s project manager Gerardo

treatment companies (including those involved in the waste-to-energy area), and chemical

users, such as manufacturers in the textiles, construction, retail and other sectors. “We are still at the beginning of circularity,” Ambrosecchia says, noting that the journey towards that goal is moving faster downstream. But this workshop also illustrated EPCA’s vision of an expanded community, not just petrochemical producers and their logistics partners, but also downstream users and supporting sectors. “Collaboration is essential,” Ambrosecchia adds. “No one can solve this alone.” More detailed feedback from the two events will be provided during the Annual Meeting by Professor Ann Vereecke from Vlerick Business School, who is continuing to work with EPCA on its initiatives in these areas. The aim of this work, Ambrosecchia says, is to find out what it takes to take the lead and how cross-sector collaboration can work in practice.

LINKS IN THE CHAIN

Verstraeten agrees, saying “We have to connect all the dots.” EPCA is well placed to do just that, by linking the wider community of petrochemical producers, transport companies, downstream users and other interests. As an example of how diverse those ‘dots’ are in

institutions are a crucial element in this change process.

Looking ahead, Verstraeten will be giving up his role as SCPC chair in November and, as is the

the supply chain, Verstraeten reveals some details

And there will be a lot of projects like this

of a project in which Covestro is involved, to build

coming along. “There are going to be a lot of

the logistics sector. “But the journey will

a hydrogen-powered tank barge and operate it

alternative fuels in the supply chain – and in

continue,” he says. “It is up to service providers

on the Rhine network. Covestro already has

just a few years,” Verstraeten says. “Legislation

to step up now.” SCPC has also been bringing in

hydrogen in its chemical processes and, ideally,

has to follow.”

talent from a wider range of sources, including

the barge will be run on hydrogen produced at

The past year has also shown how vulnerable

usual practice, handing it over to someone from

the IT sector and external experts who form the

its plants. To make this concept a reality will take

supply chains can be to disruptions, in Europe

Digital Advisory Body. “SCPC needed to pick their

the collaboration not just of Covestro, its vessel

just as much as elsewhere. Road congestion,

brains,” Verstraeten observes.

operator and shipbuilder, but also the terminals

driver shortages, maintenance on the rail network

where the barge will call, marine architects and,

and the variable water level on the Rhine have

seem like a revolution but, Ambrosecchia insists, it

perhaps most crucially, the regulatory authorities,

all caused problems. Shippers need to have

is really just evolution: it’s not about doing different

who will have to decide on the necessary safety

alternatives as a back-up, Verstraeten notes.

things but about doing the same things more

standards and vessel design concepts as well

And, of course, it will all need paying for –

efficiently. “Circularity and connecting all the dots

as the permits for storing hydrogen. Funding

another topic that will be examined during the

are the big challenges,” he concludes. “This will be

from national governments and even European

Annual Meeting.

a big part of our work over the next few years.”

HCB MONTHLY | OCTOBER 2021

The transformation that EPCA talks about may

WE THE PEOPLE HOW HAVE THE PETROCHEMICAL INDUSTRY AND ITS LOGISTICS PARTNERS FACED UP TO THE RECENT UNPRECEDENTED BUSINESS ENVIRONMENT? HCB ASKED FOUR MEMBERS OF EPCA’S SUPPLY CHAIN PROGRAMME COMMITTEE FOR THEIR OPINION

The past year has seen an unprecedented level

have dealt with the challenges and what they

because of its environmental impact. But, he

of volatility and uncertainty in the petrochemical

need from governments and EPCA to help them

adds, maritime carriers have managed to make

supply chain, in Europe as much as in the rest of

navigate the coming years, with one eye firmly

the most of the situation where demand and

the world. Fluctuations in the level and location

on the new imperative for sustainability and the

capacity are unbalanced and are making

of demand, resulting from Covid-related

decarbonisation of the transport sector.

exceptional profits.

restrictions, port congestion, driver shortages

Jan Arnet, CEO of the Bertschi Group, notes

(again, not just in Europe), rocketing ocean freight costs and political factors have all played a part.

that global demand for chemicals – and therefore PEOPLE FIRST

for chemical transport – has risen over the past

While the past year has undoubtedly been a

year, not least because of growing consumer

swiftly to deal with changing circumstances

“tough time”, global chemical demand, overall,

activity. ‘Not going out’ has left more cash to

but this past year has posed unimaginable

has not been bad, reports Jean-Marc Viallatte,

spend on goods – although this is one reason for

challenges. Those challenges persist and

vice-president of Arkema’s supply chain group.

the problems in ocean freight, as demand for

continue to evolve rapidly, placing a day-to-day

Margins have been decent, depending on the

consumer goods (largely from China and

burden on the supply chain to respond.

product, but supply has not been so easy.

elsewhere in Asia) has filled up containers and

The logistics sector is used to having to move

Ahead of this year’s EPCA Annual Meeting,

There are problems, though. Ocean shipping

containerships.

HCB spoke to a cross-section of the

is “a nightmare,” Viallatte says. It has a big cost

Association’s Supply Chain Programme

impact on chemical producers, but also bookings

Bertschi managed very well, although the move

Committee (SCPC) to gauge their opinions on

are difficult. There is, though, no alternative.

from recession to boom in a few months in the

how well the industry and its logistics partners

Arkema avoids airfreight wherever possible

second quarter of 2020 was “a major challenge

Jean-Marc Viallatte, Arkema

HCB MONTHLY | OCTOBER 2021

Jan Arnet, Bertschi

But on a practical level, Arnet says that

Guy Bessant, Stolthaven Terminals

EPCA SPECIAL SUPPLEMENT 23

for an asset-based company”. Fluctuations in demand and deployment patterns have placed

TERMINAL ZONE

While many in the supply chain suspect that

For his part, Guy Bessant, president of

the lines are happy at the moment, given the

Stolthaven Terminals, says that business has

market situation, Schlueter says that operational

been fairly stable over the past year. Stolthaven

disruptions are “costing a whole lot of money”.

operators, has been the safety of its employees.

has little exposure in the petroleum sector,

This is fine as long as rates are where they are

As Arnet explained in this issue a year ago,

which has been volatile, especially in terms

but that may not last for long. Cost control is,

Bertschi moved swiftly to home working,

of transport fuels, while the chemical market

therefore, a big topic internally at Hapag-Lloyd,

bolstered by its investment in IT, and this has

has been stable, along with more biofuels

which – like all players in the supply chain –

performed well. Bertschi also organised

business. There is, too, “a lot of buzz around

needs to optimise its cost base.

in-company vaccination programmes, which

new energies”.

a lot of stresses on personnel, he notes. A major issue for Bertschi, as for many other

was much appreciated. Going forward, Arnet expects, there will be

HCB also spoke to container liner company

Meanwhile, Schlueter adds, she hopes that the pandemic has triggered a change of mindset

Hapag-Lloyd, whose managing director of

among shippers. It will be good all round if they

a hybrid of in-office and home working. A lot

global sales, Danny Smolders, is a member

can start looking for longer-term relations with

of interaction is needed for people to work

of EPCA’s SCPC. His colleague Sarah Schlueter,

carriers and move away from constant tendering.

together as a team. But he is alert to the fact

head of niche products development, says that

that employees will need time to adjust to the

2020 was not an easy year for dangerous goods

digitisation, something that EPCA has been

‘new normal’, though he also says they are

at the company; a new team for dangerous

looking very hard at for some years now.

keen to get on with it. Bertschi has a large,

goods validation had been organised and, as

Schlueter says Hapag-Lloyd is following suit,

multinational workforce and they do not want

with other staff, they had to work from home,

putting a lot of investment into IT, especially in

to feel isolated.

which slowed down implementation.

the area of dangerous goods validations. That

Arnet had already raised the issue of

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delivers a better service to its customers and

proof of the value it provides has now been seen

platforms. A lot of work has been done in this

improves internal efficiencies. The structure of the

both by operators and customers. The next step,

area for land transport in recent years, not least

container shipping business does mean, though,

he says, is to extend digital systems to rail and

by the European Chemical Transport Association

that more work is needed to solve inter-line

shortsea operators, to “get everything lined up”.

(ECTA) and partner organisations. The

communication and standards, where there is

development of standardised ‘milestones’ sets

possibly a role for blockchain-based systems. A common validation tool would help, she says.

common markers and, Arnet says, “makes the STEPS ON THE ROAD

whole system more visible and seamless”.

accelerated the digitisation process”, which he

major stumbling block towards wider adoption of

deal with gathering information from all vehicles,

sees as something that “helps our industry”. The

digitised systems, particularly on sector-wide

including those operated by contractors that may

Arnet says the pandemic has “definitely

HCB MONTHLY | OCTOBER 2021

‘Getting everything lined up’ can be seen as a

There are still questions: how can the system

not have the necessary communications

says, “because of a lack of visibility over what

realises that it has to go beyond ‘where’s my

onboard? Bertschi now has a portal that its

was about to happen. We had to be quickly

stuff?’ to providing actual value.

customers can use to see the location and

reactive – and we found we didn’t have the

status of shipments – but did they want this?

ability to do that.”

It has been well received, Arnet says, but while

As a result, as Viallatte puts it: “Everyone’s

some customers want just an overall view of their

been juggling.” This has been a largely manual

loads, others want everything. Furthermore, he

process, with an impact on working capital.

The company has been looking to partner with

adds, the challenge now is to “stop people

“I would like to have a more dynamic system,”

rail operators to share data, but they often simply

wanting to go back to the old days”.

he adds.

don’t have it available. This is, he says, not helpful

For Arkema, though, digitisation is one of

Arkema is working on a customer portal to be

OFF THE RAILS

One problem area for Arkema is rail transport.

when it comes to shifting more cargo onto trains.

two main priorities, alongside corporate social

able to provide track and trace information to its

“We would move more by rail if visibility were

responsibility (CSR), at present. “We are

customers, as some other chemical suppliers

better and if the service were more productive

becoming more mature in digitisation, with lots of

are already doing. This will also be very useful

and reliable,” Viallatte adds.

initiatives,” Viallatte says. Digitisation has focused

for the company’s customer service department,

on basic processes: track and trace, transport

Viallatte notes. Meanwhile, the internal monitoring

data, Viallatte remarks. In Europe, for instance,

management systems, data management of

of shipments has, he adds, “been a real

Arkema is tracking all railcars and gets

the supply chain for the whole group, and the

eye-opener” and Arkema is now working with

consolidated information and reports through a

management of master data. Arkema is now

Nexxiot to allow the tracking of tank containers

control tower powered by Everysens. This helps

working on digitising the sales and order

all around the world.

a lot with maintenance planning. For Arkema, the

processing (S&OP) system, with the aim of

Rail leasing companies are better at supplying

Arkema is also beginning to partner with its

modal shift is part of daily life – and it is not just

carriers and freight forwarders. “For us it’s very

rail, although not all locations have the option to

valuable,” Viallatte says. “It’s a way to enrich

use inland waterways because of their location.

has had an impact on the digitisation journey. “We

discussions with LSPs – we now have the data

Water levels on the Rhine are also problematic

found during Covid that we were not well

to see what’s happening.” But when it comes to

and it is difficult to manage restrictions. “If you

equipped to deal with ‘what if’ scenarios,” he

providing information to its customers, Arkema

have to switch back to road, competition is a

becoming more collaborative. Viallatte agrees with Arnet that the pandemic

HCB MONTHLY | OCTOBER 2021

problem,” he adds. “It’s hard to get the capacity you need.”

Most – but not all – European governments are

reducing carbon emissions but it is also

now investing in rail, Viallatte adds, and starting

desperately needed by shippers struggling with a

to implement actions. As a result, things are

lack of capacity in road transport. As Arnet says,

information more rapidly, widely and transparently

improving. “It’s the first time we’ve seen them get

the problem of recruiting more drivers in the road

to all players, Viallatte reckons. This would help to

so serious about rail,” he says. But growth will not

haulage sector is crucial: unless that can be

promote intermodal use, though other trends have

come from massive volumes – they are there

solved, industry will struggle. There are some

also played a major part: single wagon offers, rail

already. “We need to be more serious about

obvious pointers – drivers want to drive and they

infrastructure investment, rising imports, lack of

single-wagon moves,” he explains. This will

want to be home on time; “we can’t have them

capacity and driver shortages in road transport.

require more commonality between countries

waiting around at loading and unloading sites,”

“Intermodal is now a crucial element in the

to allow such movement. The European

he observes. At the moment though, there are too

transport mix,” he says.

Commission will need to be involved in work

many times when capacity is simply not available.

Digitisation can help deliver the necessary

Rail has the potential to take more volume off

to harmonise the overall European network, he

the roads but the industry can be slow to add

reasons, as states may be somewhat reluctant

capacity. On the other hand, Bertschi has seen

to give up protection of their own volition.

an increase in rail volumes from Asia to Europe and

Work to improve the reliability and availability of

GOING GREEN

Sustainability is not just about the modal shift and

it is discussing this option with some customers

rail services has never been more urgent. Not

the route to decarbonisation involves a transition

who are trying to avoid being exposed to ocean

only is the long-awaited modal shift from road to

in the forms of energy employed in industry and in

shipping.

rail vital if Europe is to meet its self-set targets for

transport. Bessant looks at the current landscape:

HCB MONTHLY | OCTOBER 2021

Stolt-Nielsen knows that there will have to be new

attitude to newbuilding, which can lead to fewer

not store product at the terminal “We are also

fuels, the question is which one? “Hydrogen will

orders for new ships and less capacity available in

investing in information systems since sustainability

happen,” he says, noting that a number of

the near term, with a likely impact on freight rates.

goals need to be verified along the supply chain

countries have made a commitment and

The same goes for bulk liquids storage

if the system is going to work,” Bessant adds.

established mandates. The ammonia supply

companies, who want to create the infrastructure

chain is well established and shows good

for future fuels but who cannot invest without

projects. And Europe can draw lessons and work

commitments. “For the logistics industry it’s a big

can be made available and is verifiable, companies

with the Middle East, where there are lot of

challenge,” Bessant says. “Logistics costs will

will make changes in response – that will drive

potential projects – though the region is blessed

need to reflect the investment needed.”

what is seen as ‘acceptable’ in the industry.

with plentiful solar energy. Elsewhere, there are

While undoubtedly an important element

There need to be checks on who is doing what. The key, Bessant stresses, is data. If information

In Europe, the challenge of the EU Green Deal

more biofuels in the supply chain, Bessant says;

in climate change, Bessant also queries the

is both an opportunity and a challenge for the

this often requires some modification to assets

focus on carbon dioxide emissions, noting

industry, including getting consumers to buy into

such as upgrading tanks, especially with heating.

that sustainability involves more than that. For

it, Bessant thinks. Governments and industry need

Stolthaven it involves, among other things, volatile

to work together to educate the public and allow

being sustainable if you’re business isn’t

organic compound (VOC) emissions, wastewater

them to consider this question: what is the cost of

sustainable,” Bessant says. Who is going to pay

and, perhaps most importantly, its people –

being sustainable? And are they willing to pay it?

for the necessary investment? In the chemical

the Covid pandemic and social issues over the

It is clear that, if governments, industry and

tanker sector margins remain “razor-thin”, he says.

past year has brought this to the fore, he says.

the public at large are going to make a difference

But can industry afford it? “There’s no point in

How can owners afford to invest in future-proofed

There is a cost, of course: Stolthaven has

in terms of sustainability, they will all need to

vessels, not knowing which future fuels will be

spent around $10m over the past few years

work together. Indeed, as Bessant concludes,

readily available in which ports, and what price it

at its Houston site to handle and clean more

“’Partnership’ is emerging as the most important

will cost? One reaction to that is a ‘wait and see’

wastewater, including for third parties who do

element in sustainability."

HCB MONTHLY | OCTOBER 2021

MUST DO BETTER EUROPE • MODAL SHIFT IMPLIES MOVING FREIGHT FROM ROAD TO SEA AS WELL AS TO RAIL. BUT HOW MUCH MORE SUSTAINABLE IS SHIPPING? A NEW REPORT FINDS SOME NUMBERS MARITIME TRANSPORT PLAYS and will continue to play an essential role in global and European trade and economy. In recent years, the maritime sector has taken significant measures to alleviate its environmental impacts. Ahead of a projected increase in global shipping volumes, a new report reveals for the first time the full extent of the impact of the EU maritime transport sector on the environment and identifies challenges to achieving sustainability. The European Maritime Transport Environment Report (EMTER), produced by the European Environment Agency (EEA) and the European Maritime Safety Agency (EMSA),

EMTER is designed as a ‘health-check’ of the sector in terms of its environmental impact and is the first comprehensive assessment to be made. The top-line figures are that ships are responsible for 13.5 per cent of all greenhouse gas (GHG) emissions from transport in the EU, way behind road transport (71 per cent) and even aviation (14.4 per cent). Sulphur dioxide emissions from ships calling in European ports amounted to some 1.63m tonnes in 2019, though the report notes that this should fall following the introduction of stricter environmental limits by the International Maritime Organisation (IMO). EMTER reports also on other environmental

notes that 77 per cent of external trade and 35 per cent of all intra-EU trade moves by sea and that, while there was a drop in activity last year as a result of the Covid-19 pandemic, the sector is expected to grow strongly over the coming decades in response to rising consumer and industrial demand.

impacts, noting that maritime transport is at

HCB MONTHLY | OCTOBER 2021

 THE MARITIME SECTOR PLAYS A VITAL ROLE IN EUROPE'S ECONOMIC WELL-BEING BUT MUST DO MORE TO REDUCE ITS ENVIRONMENTAL IMPACT

least partly responsible for a more than doubling in underwater noise levels in EU waters between 2014 and 2019 and is also responsible for half of all the non-indigenous species introduced into European seas since 1949. On the other hand, the report remarks, the number of major oil spills from tanker shipping has declined markedly, with only eight (out of a worldwide total of 62) occurring in EU waters over the past decade. Overall, the maritime sector in the EU faces a crucial decade during which it must transition to a more economically, socially and environmentally sustainable sector. EMTER allows that measures have been taken – ship speeds have been reduced by 20 per cent compared to 2008, which already reduces emissions, and there is serious interest and investment in decarbonising the sector through the use of non-traditional fuels. However, the report is clear that more must be done to reduce the environmental impact of maritime transport. SET THE BAR HIGH That is where we stand now and EMTER establishes a benchmark against which future environmental advances can be measured. There are already emerging solutions for the maritime sector, including alternative fuels, batteries and onshore power supply, but the report also looks at potential challenges

SUSTAINABILITY 33

arising from climate change, such as rising sea levels and what that means for Europe’s ports. “Our Sustainable and Smart Mobility Strategy makes clear that all transport modes need to become more sustainable, smarter and more resilient – including shipping,” says Adina Va �lean, EU Commissioner for Transport. “Although maritime transport has improved its environmental footprint in past years, it still faces big challenges when it comes to decarbonising and reducing pollution. Based on all the latest evidence, our policies aim to help the sector confront these challenges, by making the most of innovative solutions and digital technologies. This way, maritime transport can keep growing and delivering on our citizens’ daily needs, in harmony with the environment, all the while maintaining its competitiveness and continuing to create quality jobs.” “This joint report gives us an excellent overview of the present and future challenges related to maritime transport. The message is clear: maritime transport is expected to increase in the coming years and unless we act now, the sector will produce more and more greenhouse gas emissions, air pollutants and underwater noise,” says Virginijus Sinkevic�ius, European Commissioner for Environment, Oceans and Fisheries. “A smooth but rapid transition of the sector is crucial to meet the objectives of the European Green Deal and move towards carbon neutrality. This will also create new economic opportunities for the European transport industry as part of the necessary

 THE EMTER REPORT OFFERS A BENCHMARK FROM WHICH A FUNDAMENTAL SHIFT TOWARDS SUSTAINABILITY CAN BE MEASURED

transition to a sustainable blue economy. The challenge is immense, but we have the technologies, the resources and the will to tackle it.” LET’S GET IT TOGETHER As has been seen repeatedly in projects and initiatives to decarbonise the maritime sector, it will take a broad range of interests to work together – including regulators and authorities. Furthermore, it is clear that this is not just a ‘maritime’ issue – shipping works in tandem

with its industrial and commercial partners on land and it is noticeable that port authorities are often important participants in bringing all those interests together, including those with new ideas that can be applied across the maritime supply chain. That is recognised by EMSA’s executive director, Maja Markovc�ic� Kostelac, who says: “Innovation-driven sustainability is an opportunity for shipping to complete a transformation on the same scale as the replacement of sails by steam. This new maritime revolution will depend on ships developed through advanced technology and digital solutions, but also on a multi-layered, fully inclusive process at national, European and international level that encompasses safety, security and social aspects as well as environmental ones. “But crucial too is shipping’s role as a link in a transnational logistics chain,” Kostelac continues. “This means that every part of that chain – from ports to the shipbuilding sector, from shippers to the private and public financial sectors – must be included in our drive towards sustainability.” Other comments indicate that European agencies will be taking a strong stand on the need for further improvements in emissions and other environmental impacts, although they also acknowledge the vital role the sector plays in the region’s economy. Hans Bruyninckx, EEA’s executive director, has this to say: “While Europe’s maritime transport sector plays a vital role for our economic well-being, this report clearly shows that maritime transport in Europe and the entire international shipping community have an urgent responsibility to step up their efforts to reduce this sector’s environmental footprint. While steps have been taken already based on European and international policies, much more is needed for a fundamental shift towards a sustainable maritime transport sector that contributes to secure the future well-being and survival of our most sensitive ecosystems and coastal areas, and the well-being of Europeans.” The full EMTER report can be downloaded from the EMSA website at http://emsa.europa.eu/ emter.html.

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THE INTERNATIONAL MARITIME Organisation (IMO) has set stringent targets for the reduction of carbon emissions from global shipping activities and vessel operators are all looking at how they are going to meet those targets. It is apparent, though, that whatever measures ship operators and managers put in place, it will still be down to those onboard to ensure that actual operations at sea align with those measures. To make the link between shore and ship, Bernhard Schulte Shipmanagement (BSM) has

giving personalised performance feedback to its masters and chief engineers can positively impact their behaviour in selecting the optimum speed for their vessel and ultimately lead to more fuel-efficient voyages. The concept applies behaviour-based data science along with operational data analytics from each vessel in a dedicated app built by Signol, which creates personalised targets and feedback for each crew member. “While shipping is the most efficient means of global transport with the lowest carbon

FEEDBACK LOOP The use of the Signol app onboard BSMmanaged vessels intends to not only improve crew decisions with regards fuel consumption, but also aims to boost seafarer morale and wellbeing onboard as a benefit of ongoing communication and personal interaction. “Our studies have shown that changing the master’s behaviour alone could result in over 5 per cent lower fuel usage as well as in much higher job satisfaction by giving employees a sense of empowerment,” says Dan White, CEO and co-founder of Signol. More than 60 masters and chief engineers on 28 vessels will take part in the pilot project, which kicked of this past 25 August. Over a period of six months, each participating crew member will receive individualised targets via the Signol app, calculated on the basis of the crew’s recent performance. Every week, participating seafarers will obtain updates on personal milestones and achievements via the app and email. They can digitally review their voyages and the progress they have made on fuel efficiency and submit their personal feedback via the app, which will contribute towards further improving the solution. “Achieving carbon neutrality requires structural and incremental change and can only be achieved if corporations act in unison,” says Topham. “That is why BSM is forming strategic partnerships worldwide to develop and implement innovative solutions that monitor and mitigate the environmental impact of our managed fleet.” Signol offers behaviour-based systems for all transport sectors. Its work began in aviation, where Virgin Atlantic saved more than $6m in fuel costs and 24,000 tonnes of CO2 emissions in eight months, finding it the most cost-effective way of reducing carbon emissions. It offers a two-part solution,

formed a strategic partnership with Londonbased software start-up Signol, to explore how

emissions, we at BSM believe that the potential for improvement in this field is still immense,” says Nick Topham, managing director of BSM Germany. “By introducing our crew to the direct impact of their actions, we hope that we can drive them to make measurable fuel and CO2 savings.”

nudging employees to improve their performance and work more efficiently, while also providing managers with the data to identify company-wide trends and areas for improvement. www.bs-shipmanagement.com www.signol.io

NUDGE NUDGE MARITIME • SHIPPING MAY BE THE MOST CARBON-EFFICIENT MEANS OF TRANSPORT BUT THAT DOES NOT MEAN IT CANNOT IMPROVE. BSM IS TAKING AN INNOVATIVE APPROACH

 IF PERSONNEL HAVE A CLEAR IDEA OF THEIR ENVIRONMENTAL IMPACT, THEY CAN CHANGE THEIR BEHAVIOUR

HCB MONTHLY | OCTOBER 2021

SUSTAINABILITY 35

FAITH IN FUTURE FUEL HYDROGEN FUEL • HGK SHIPPING IS PUTTING ITS FAITH IN HYDROGEN AS THE MARINE FUEL OF THE FUTURE WITH ITS LATEST NEWBUILDING ORDER FOR INLAND TANKERS HGK SHIPPING IS planning a further expansion of its inland tanker fleet with an order for two Type C tankers from the Scheepsreparatiebedrijf De Gerlien van Tiem shipyard in Druten, the Netherlands to join its liquid cheicals business unit. This order also marks another step on the way to innovation and sustainability in the HGK fleet, which already includes two tank vessels using an alternative drive system, by being designed to be ‘hydrogen-ready’. HGK Shipping’s mission statement includes a commitment to innovation and sustainability and it sees hydrogen as able to play an important role within this corporate strategy. That is reflected in the design of the new vessels, which will have innovative propulsion concepts and power management system as well as a void space in the centre of the hull, which can be used for hydrogen fuel storage or, indeed, batteries. “We’re continuing to expand our fleet at a completely new level with these two new ships,” says Norbert Meixner, business unit director, liquid chemicals, at HGK Shipping. “We’re convinced that hydrogen will be an important, if not even the energy source of the future. As a result, we’re already preparing our ships’ designs in such a way that they can be operated with hydrogen in future. We also have the option of using the void space in alternative ways, for example,

QUICK WORK The new vessels are due to go into service as early as in the first quarter of 2023. HGK Shipping has once again decided to work with the De Gerlien van Tiem shipyard, partly because of this challenging deadline. The shipyard has been involved in the design of the new vessel concept, which has now been signed and sealed in a contract, from the initial idea onwards; it was developed at HGK Shipping’s Design Centre. The new vessels are designed as Type C tankers with special tanks to handle highly corrosive cargoes, optimised for operations in shallow water and are ‘hydrogen-ready’. “The fact that we can now finally implement this future-oriented concept is confirmation for all the colleagues at the Design Centre of the course that we’ve been continually and deliberately pursuing for two years now,”

says Tim Gödde, business unit director, ship management at HGK Shipping. “This outstanding project will lay the foundation for us to be able to handle hydrogen-powered drive systems in the future.” HGK Liquid Chemicals supplies various industrial sectors with light and heavy liquid chemicals and with non-hazardous liquids as a long-standing partner of the chemical industry. The tanker fleet in the corporate business unit transports some 6m tonnes of liquid goods every year along the river Rhine and its tributaries, the north-west German canal system as well as in Belgium, France and the Netherlands. HGK Shipping is part of the Häfen und Güterverkehr Köln (HGK) Group, the logistics wing of Stadtwerke Köln Konzern (the City of Cologne’s public utilities group). HGK began life as a port operator and has since diversified into a Europe-wide provider of integrated transport and logistics services. It operates the largest inland port network in Germany, one of the largest private freight rail networks and its own workshops. HGK Shipping currently operates some 300 vessels, including chartered ships, carrying a wide range of liquid and dry bulk products and breakbulk cargoes. www.hgk.de

installing batteries.”

 HGK SHIPPING CONTINUES TO BUILD ITS INLAND FLEET WHILE HAVING A FIRM EYE ON THE POTENTIAL OFFERED BY EMERGING ALTERNATIVE FUELS

WWW.HCBLIVE.COM

WATER STUFF HYDROGEN • OFTEN IDENTIFIED AS THE BIG FUEL FOR THE DECARBONISED FUTURE, HYDROGEN WILL NEED TO BE MOVED. PLANS ARE UNDERWAY TO ESTABLISH A SUPPLY CHAIN THE PORT OF Rotterdam Authority signed an agreement this past 30 July with Chiyoda Corp, Mitsubishi Corp and Koole Terminals, with the aim of studying the feasibility of establishing a commercial-scale import chain to bring hydrogen from overseas sources to Rotterdam. North-west Europe will have to import hydrogen on a large scale if it is to achieve its targets of net-zero CO2 emissions, the port authority says. As the region’s major energy hub, it makes a lot of sense for Rotterdam to be at the forefront of establishing that import chain, to facilitate the movement of hydrogen from countries where it can be produced and supplied cost-effectively, using renewable energy inputs.

HCB MONTHLY | OCTOBER 2021

Not surprisingly, given that innovative fuels such as hydrogen will challenge their existing business models based largely on hydrocarbon-based liquids, many existing operators in the supply chain are also keen to get involved. They will need to adapt their existing facilities and assets – or develop dedicated new facilities – in order to be able to prosper in a decarbonised world and it seems sensible to participate in the development of the direction that the process towards that world will take. HANDLING ISSUES Hydrogen is a much more challenging product to handle and transport than oil or liquid

chemicals. Gaseous in its natural state, it needs to be liquefied if it is to be transported efficiently and stored safely. There are three routes to doing this. Firstly, it can simply be liquefied by a cryogenic process, reducing its temperature to -253˚C. This is a similar step to that used in moving natural gas in the form of LNG, although the temperature that needs to be reached for it to liquefy is much lower, indicating a significant energy input at that point in the chain. Nevertheless, there have been some moves in that direction, with cryogenic hydrogen tankers having been designed in Japan. A second option is to convert the hydrogen into a carrier, such as ammonia or methanol; this is a simpler process and, in the case of methanol, may also be able to double up on the carbon savings by using captured CO2 as a feedstock. Furthermore, both ammonia and methanol can be used directly as a fuel, when suitable engines are installed, and both have a well established supply chain with wide availability around the world. The third option is to use a liquid organic hydrogen carrier (LOHC); this is a similar

SUSTAINABILITY 37

idea, except that it is specifically designed to contain the hydrogen as part of a carrier substance so that it can be transported as a liquid, and then to release the hydrogen at the end of the chain, returning the other elements of the LOHC for return and re-use. One LOHC attracting interest is methylcyclohexane (MCH), which is produced through the hydrogenation of toluene and is liquid over a wide temperature range – from -130˚C to +100˚C. As such it is very easy to handle and store under ambient temperatures and pressures. ROAD TO RECOVERY Chiyoda Corp has developed a proprietary technology, SPERA Hydrogen, to release hydrogen from MCH through dehydrogenation; the outputs of this process are simply hydrogen and toluene. Chiyoda, along with Mitsubishi Corp, Mitsui & Co and NYK Line – the partners in the Advanced Hydrogen Energy Chain Association for Technology Development (AHEAD) – has already established the viability of this chain through a demonstration project in 2020 involving the transport of MCH from a hydrogenation unit in Brunei to a thermal power plant in Kawasaki, Japan and returning the toluene back to Brunei. Hydrogen derived from MCH is also expected to replace ‘grey hydrogen’ – derived from fossil fuels – in the desulphurisation process at oil refineries.

 ESTABLISHING A SUPPLY CHAIN TO DELIVERY HYDROGEN INTO EUROPE IN LARGE VOLUMES WILL REQUIRE GLOBAL COLLABORATION AND PARTNERSHIPS

“Hydrogen transported by sea has been used for power generation for the first time in Japan, which marks a significant milestone towards the realisation of ‘Hydrogen Society’,” Chiyoda says. The Port of Rotterdam agrees, saying: “This was the world’s very first global hydrogen supply chain project proving the technical readiness for commercial use. SPERA Hydrogen is expected to play an important role in the realisation of commercial-scale hydrogen supply chains globally and contribute to global carbon neutrality in 2050.” A major advantage of this route to a hydrogen-based fuel economy is that it uses existing transport and storage infrastructure: current tank terminals and chemical tankers can be employed without significant investment in adapting them to the new product. In the newly announced study, the Port of Rotterdam sees itself has playing a “matchmaking role” between major hydrogen consumers in north-west Europe and competitive overseas suppliers of green hydrogen, as well as providing support for bringing the project to fruition. Koole Terminals will look at how best to innovate its terminal facilities and support the development of the onward transport from the port to end users. The feasibility study is expected to take a year; the target will be to import up to 200,000

supported research work into establishing an exchange for hydrogen, including quality certification, a price index, a spot market and trading instruments. “The growing demand for climate-neutral hydrogen creates the necessity for the market to work properly and for transparent, efficient pricing,” says the port. “A hydrogen exchange will be able to facilitate both.” It has already been agreed to establish a new hydrogen exchange under the name HyXchange, along the lines of existing electricity and gas exchanges, which will test the initial trading products in pilots and simulations with the involvement of market players. All the Dutch port authorities are engaged in hydrogen infrastructure plans, while Gasunie has been working on plans for a national infrastructure that will connect all these locations to each other, to storage facilities, and to the wider market in Germany and Belgium. All those involved see an important role for government in creating the right conditions for the development of a market in hydrogen, including the certification of green and low-carbon hydrogen and hydrogen imports. “Although the [Dutch] government has big ambitions in the area of hydrogen, more specific instruments are needed if they are to be fully realised,” says the Port of Rotterdam. “It is about an environment in

tonnes of green hydrogen in 2025 and up to twice that by 2030. Koole’s role in facilitating onward movement of imported hydrogen is an important element. The Port of Rotterdam, along with its counterparts at Amsterdam, Groningen and North Sea Port, as well as Gasunie, last year

which market parties are encouraged to get involved in a trade in hydrogen for a speedy and efficient energy transition and to achieve climate neutrality.” koole.com www.chiyodacorp.com www.portofrotterdam.com

WWW.HCBLIVE.COM

MULTIFUNCTION ROOM TERMINALS • NOT YET UNDER CONSTRUCTION, THE PLANNED GERMAN LNG TERMINAL WILL BE ABLE TO FORM A HUB FOR THE DECARBONISATION OF THE GERMANY ENERGY SYSTEM THE GERMAN LNG Terminal, currently still in the permitting phase, is designed to have two 165,000-m³ storage tanks and supply up to 8bn cubic metres of natural gas to the regional energy market. The project, a joint venture between Oiltanking, Vopak and Gasunie, submitted its formal planning application on 30 June 2021. Natural gas is seen as a useful way to reduce the environmental impact of the energy industry, if it replaces oil or coal in the energy mix. But, besides its currently planned use, the LNG terminal in Brunsbüttel also has the potential to play a role in the development of infrastructure for a future climate-neutral energy supply based on imported green energy, according to a key finding in a recent study by the Technical University of Hamburg

(TUHH). The study also found that Brunsbüttel is very well suited in principle as a site for a terminal that could develop into a hydrogen import hub, especially for northern Germany. “If Germany’s energy supply is to be climate-neutral by 2045, it is highly likely this can only be achieved by also importing ‘green’ energy on a scale required by the energy industry. Importing green methane and green hydrogen – in pure form or as a hydrogen derivative like ammonia – is a good way of achieving this,” says study leader Professor Martin Kaltschmitt from the Institute of Environmental Engineering and Energy Economics (IUE) at TUHH, commenting on the key findings. Kaltschmitt believes that, in the medium term, an LNG terminal such as the one planned for Brunsbüttel could also be used “multifunctionally” – not only for importing liquid methane but also for distributing liquid hydrogen and/or liquid ammonia. Discussing the concrete options, Professor Kaltschmitt

 LNG TERMINALS HAVE THE POTENTIAL TO PLAY AN IMPORTANT ROLE IN THE DELIVERY OF GREEN FUELS

thinks that “from a technical point of view, this is both feasible in principle and desirable, although compared to a ‘classic’ LNG terminal, the individual cryogenic energy sources would need different technical – and thus pretty complex – adaptations”. He notes that liquid ammonia is probably slightly easier to handle than liquid hydrogen. ALREADY ON THE WAY Elaborating further, Professor Kaltschmitt says that the location and industrial connections of the Brunsbüttel site make it a good proposition: “Brunsbüttel possesses excellent conditions for developing into an import hub for supplying hydrogen to northern Germany.” He bases this view partly on its excellent seaward connections and the available and expandable connections to the existing distribution and long-distance natural gas pipeline network, as well as on the many potential industrial consumers in northern Germany. Another option in connection with the planned LNG terminal would be to set up – at the interface between research and practice, and thus between business and science – an experience-based centre of excellence in Schleswig-Holstein for handling cryogenic gases. “This would enable us to continuously develop knowledge about how to successfully defossilise our energy system, and this information would be available for the ongoing energy system transformation,” suggests Kaltschmitt. “If Germany wants to achieve its binding climate gas reduction targets, we need to gain knowledge about the logistics of cryogenic liquids. And if we consider the import of ‘green’ cryogenic energy sources conceptually, an LNG terminal such as the one planned in Brunsbüttel could be a starting point,” Kaltschmitt concludes. RWE and German LNG Terminal already concluded a Memorandum of Understanding last summer to explore together the possibilities of importing ‘green’ hydrogen at the site. www.oiltanking.com germanlng.com

HCB MONTHLY | OCTOBER 2021

Issue 7

Autumn 2021

TSA

Tank Storage Associa on

Tank storage provides an essential interface between sea, road, rail and pipeline logistics.

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C E R TA S E N E R G Y I S FUELLING FUTURES T H E R I G H T WAY: I N C O N V E R S AT I O N WITH WILMA K E L LY.

The quarterly magazine from the Tank Storage Association

Also in this issue, we look at careers in the bulk storage and energy infrastructure sector and the role of parks and clusters in the energy transition.

TSA

Tank Storage Associa on

Insight is published by the Tank Storage Association, the voice of the UK’s bulk storage and energy infrastructure sector. To contact the editorial team, please email info@tankstorage.org.uk TSA Insight Team Peter Davidson, Barrie Salmon, Nunzia Florio CONNECT WITH US @UK_TSA Tank Storage Association TSA @uk_tsa

CONTACT Tank Storage Association Devonshire Business Centre Works Road Letchworth Garden City Herts. SG6 1GJ United Kingdom Telephone: 01462 488232 www.tankstorage.org.uk

TSA has used reasonable endevours to ensure that the information provided in this magazine is accurate and up to date. TSA disclaims all liability to the maximum extent permitted by law in relation to the magazine and does not give any warranties (including any statutory ones) in relation to its content. Any copying, redistribution or republication of the TSA magazine(s), or the content thereof, for commercial gain is strictly prohibited unless permission is sought in writing from TSA. Claims by advertisers within this magazine are not necessarily those endorsed by TSA. TSA acknowledges all trademarks and licensees.

Peter Davidson Executive Director, TSA Welcome to the autumn edition of Insight magazine. For this issue, as we look ahead to COP26 and beyond, we explore key developments in the UK energy transition and the crucial role of the bulk storage and energy infrastructure sector. TSA members are a critical part of the supply chain, ensuring the products of today and tomorrow reach their customers, and are already active in a number of areas that will drive success going forward. While ultimately investment and collaboration with Government and all partners will be pivotal as the UK transitions to a decarbonised economy, the sector is firmly focused on driving the opportunities of tomorrow. In this issue, we also explore training, careers and apprenticeships in the bulk storage and energy infrastructure sector as well as competence in process safety management. I hope you enjoy this new edition of Insight.

Contents

In Focus TSA responds to Government’s Transport Decarbonisation Plan.

The National Security and Investment (NSI) New laws will advance the UK’s gold-star reputation as an attractive place to invest.

Energy Transition isn’t just about new technologies - parks and clusters have a huge role to play in enabling them, too. Jay Brooks, Site Director Industrial Parks, px Group, discusses the role of parks and clusters in the Energy Transition.

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Case study: Decommissioning a fuel terminal Adler and Allan provides Insight with a case study on the full end-to-end decommissioning of a fuel terminal asset.

Application Notes: Meeting Terminal Requirements for Fuel Loading The application team at Scully Signal discusses EN13922 Compliance with IEC61508 – Overfill Prevention and Grounding Verification System Overview.

Process Safety Competence is like an ice cream… Richard Roff, Chair of the Process Safety Management Competence Programme Board, discusses competence in process safety management.

Certas Energy is fuelling futures the right way: in conversation with Wilma Kelly Wilma Kelly, HSE Director and TSA Vice President, discusses Certas Energy’s objectives and ambitions for the future.

News E10 petrol now being served at fuel pumps across Great Britain.

Keep CALMcloud and Carry On Reynolds Training Services mix-in the best online training and competency tools with

Bulk Liquid Storage Technician Apprenticeship Programme

UM Terminals meets customer needs with industry-leading

CALMcloud.

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accreditations

News: The Tank Storage Association has now launched a new Instagram account. Stay up-to-date with all our latest news by connecting with us @uk_tsa.

Online meetings and webinars

TSA’s Annual Review of the UK’s Bulk Liquid Storage Sector is available at www.tankstorage. org.uk/publications

The COVID-19 pandemic has challenged our model of face-to-face meetings. To adapt and respond to the current situation, all of the following meetings will take place online. •

5 October: TSA Council

•

6 October 2021: TSA SHE Committee

•

19 October 2021: TSA HR Committee

•

25 November 2021: TSA Customs & Excise Expert Committee

For more information on TSA’s meetings, write to info@tankstorage.org.uk

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In focus

TSA responds to Government’s Transport Decarbonisation Plan On Wedensday 14 July 2021, the UK Government published its plan to decarbonise transport by 2050. The plan sets out the government’s commitments and the actions needed to decarbonise the transport system in the UK and includes a pathway to net zero transport, the wider benefits net zero transport can deliver as well as the principles that underpin the government’s approach to delivering net zero transport. The plan follows on from “Decarbonising transport: setting the challenge”, published in March 2020, which laid out the scale of additional reductions needed to deliver transport’s contribution to legally binding carbon budgets and delivering net zero by 2050. Alongside the document, the Department for Transport published a consultation on ending the sale of all non-zero emission HGVs from 2040, with lighter HGVs from 2035. The consultation closed on 3 September 2021. A “Jet Zero” consultation, setting out the Government’s proposed approach and principles to reach net zero aviation by 2050, also ran until 8 September 2021. The plan further includes a commitment to consult on setting phase out dates for all nonzero emission road vehicles, with 2040 as a backstop, setting a path to a time when every vehicle on the roads will be zero emission.

Davidson, Executive Director of the Tank Storage Association, said: “We welcome the publication of the plan and stand ready to work in partnership with Government to ensure that our sector can fully support and lead on the innovations that will be necessary to meet the UK’s net-zero goals.”

“TSA members are a critical part of the supply chain ensuring existing and future products reach their customers. While the bulk liquid storage sector and associated logistics are already active in a number of areas that will drive success going forward, ultimately, investment and collaboration with Government and all partners will be pivotal as the UK transitions to a decarbonised economy.” For a copy of the Transport Decarbonisation Plan, visit https:// www.gov.uk/government/ publications/transportdecarbonisation-plan

Commenting on the publication of the transport decarbonisation plan, Peter I s s u e

T H E N AT I O N A L SECURITY AND INVESTMENT ACT while protecting national security. It supports the UK’s world-leading reputation for being an attractive place to invest and improves the government’s ability to protect the UK’s national security.

New laws will advance the UK’s gold-star reputation as an attractive place to invest.

he National Security and Investment (NSI) Act, which received royal assent on 29 April 2021, will commence fully on 4 January 2022. This marks the biggest upgrade of investment screening in the UK in 20 years and brings the government’s powers in line with those of many other countries. The NSI Act will replace the national security provisions of the Enterprise Act 2002, which will fall away once the Act comes into effect.

Ahead of the Act commencing, businesses and investors are urged to get ready for the changes by reading the published guidance to ensure a smooth transition to the new rules. Bringing in new rules for investment screening is not a signal that the UK is reducing its appetite for foreign investment. It is an upgrade to the Enterprise Act 2002, to help cope with the demands of a modern economy. The Act is about ensuring investment in the UK can continue with predictability and transparency

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The Act gives the government the powers to scrutinise and intervene in acquisitions of entities and assets that may pose risks to national security. All sectors are within scope of being assessed under the Act and some acquisitions of entities that carry out particularly sensitive work in 17 areas of the economy, such as in civil nuclear, transport, energy, quantum technologies, and defence, will have to notify and receive approval from the government before completing their acquisition. For other acquisitions of entities and of assets, any notification will be voluntary but notifying gives the benefit of a binding decision from the government on whether an acquisition will be called in for scrutiny. The Investment Security Unit – a dedicated hub that sits within the business department – will run the investment screening and provide a single point of contact for businesses wishing to understand the Act and notify the government about acquisitions. Once notified, the government will confirm whether a notification contains the necessary information.

It then has 30 working days to decide whether to call it in for a more detailed assessment or to clear the acquisition. Once the Act has commenced, if the government has not been notified of an acquisition that has occurred after the 12th November 2020 and it is within five years of the acquisition taking place, the government can issue a call-in notice for that acquisition within six months of becoming aware. If an acquisition is called in, the government has 30 working days to assess whether any conditions are needed in order to address any national security risks. The government can extend this by another 45 working days if necessary, and the government and acquirer can mutually agree to further voluntary extensions. During this assessment, the government can impose interim orders (such as requiring the acquisition to halt until the assessment is complete). Most acquisitions are expected to be cleared without being called in. Once a decision is reached, the government can clear the acquisition or, if necessary, impose conditions or block or unwind it through a final order. There are civil and criminal sanctions for non-compliance with the requirements of the Act. Any orders made by the government under the NSI Act may be challenged

by taking the decision to judicial review. In August 2021, the government consulted on a Statement – known as the NSI Section 3 Statement - which sets out the expected use of government’s power to call-in acquisitions where there is a suspected national security risk. The consultation has now closed and the government is analysing the responses. The final version of the statement and the government response to the consultation will be published this autumn. The Investment Security Unit can be contacted at investment screening @ beis.gov.uk for any queries ahead of commencement. To understand what types of acquisitions are covered by the new rules, whether you need to tell the government about an acquisition and how the government will scrutinise the acquisition, visit https://www.gov. uk/government/collections/nationalsecurity-and-investment-bill. For more information on the updated draft of sector definitions for the mandatory notification regime under the NSI Act and a statement on how the government proposes to exercise its new call-in powers, visit https://www.gov.uk/government/ publications/national-security-andinvestment-act-draft-notifiableacquisition-statutory-instrument.

I s s u e

ENERGY TRANSITION ISN’ T JUST ABOUT NEW TECHNOLOGIES PARKS AND CLUSTERS HAVE A HUGE ROLE TO PLAY IN ENABLING THEM, TOO. uch of the noise coming from the energy sector at the moment is rightly centred around the Energy Transition - a phrase that means many things to many people. To px Group, which manages and operates high hazard environments across the UK, including at our Saltend Chemicals Park, near Hull, the Energy Transition represents a sensible recalibration of energy supply that reduces emissions to protect our environment whilst ensuring our quality of life is maintained at the same time.

Jay Brooks, Site Director Industrial Parks, px Group, highlights the role of parks and clusters in the Energy Transition.

Jay Brooks, Site Director Industrial Parks, px Group

However, as we’re all looking forwards, talking about the future, and planning for growth in this new phase of industry, it’s paramount we don’t overlook what we do best and have been doing so well for years. If you were to look up px Group in your favourite search engine, you would likely see numerous references to Saltend, which we purchased from BP in 2018. Since its formation as a multi-user chemical park, Saltend

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has benefitted from over £600m of investment and there is more to come with exciting new projects on the table. Saltend, a 370-acre site with a number of world-class traditional energy businesses like INEOS and Mitsubishi Chemical, has seen unprecedented growth in recent months thanks to investment from companies heavily involved in those ‘newer’ technologies that will play a crucial role in the energy transition. Rare earths (critical to the electric vehicle and wind turbine industries), hydrogen (a greener, lower emissions energy source) and renewable fuels (Vivergo is set to restart at the Park in early 2022) are all now part of the Saltend family.

Terminal Operations – a diﬀerencemaker? Whether it’s a company in the renewable fuels, chemicals, or hydrogen sectors, regardless of the sector the one thing we constantly hear from those on site or considering investing on site is how well-run the underlying infrastructure, or Terminal Operations, is. Terminal Operations is often seen as unglamorous, and as a result, new companies, when assessing which sites to invest in for their facilities, can often overlook it. That could be down to a lack of due diligence, or even perhaps the sites themselves not

making enough of a song and dance about the operational capabilities. But our recent experience has told us that it can be the difference-maker. Saltend handles over 2m tonnes of product each year, and that’s made possible by the high-quality infrastructure on site. Bulk storage, tank farms, deep water jetties open to all on site to distribute liquids, and road tanker loading facilities that enable almost 250 road movements each day, are all parts of our infrastructure that may seem small, but when added up make the Park a big attraction for new investment. The fact that investors on site can contract px Group itself to do the Operations & Management on site is an added

incentive for those considering setting up at Saltend.

What next at Saltend? I think it’s safe to say that bulk storage and tank farms don’t set everyone’s heart racing, but the reality is that our Terminal Operations is often at the heart of why new clients come to us. It’s what we’ve been doing best for years but we’re not resting on our laurels. That’s why we are investing even more to keep our storage and logistics infrastructure at the top of the class, including in excess of £10M to reduce fugitive emissions from jetty ship loading and storage tank management.

At the same time, we’re prepping new land for development whilst also demolishing redundant tanks already on site as we gear up for new investments. Our clients, too, continue to invest in Saltend – INEOS for example has recently built two new large bulk storage tanks for acetic acid as well as new pipelines for jetty loading and unloading. Beyond that, we’re also looking to take the Saltend model elsewhere – both within the UK and overseas. Earlier this year we received new investment – and new ownership from – Aksiom Services Group, whose expertise we are exploring to see how we can access new markets, particularly in Europe. We’re in earlystage discussions to do just that, which I hope reﬂects the considerable success the Park has experienced since 2018. Of course – and there’s no shame in admitting this – aside from the companies investing at Saltend, the technology that’s being deployed, and the people on site, there’s very little that is truly revolutionary about Saltend as a standalone site. But that’s instructive in itself: getting the basics right – safety, eﬃciency, investment in services, quality infrastructure – will be the foundation of the energy transition, and Saltend is an embodiment of that. For more information, visit www. pxlimited.com

I s s u e

C A S E S T U DY: DECOMMISSIONING A FUEL TERMINAL

a man-entry clean on each tank to ensure they were gas-free and ready for demolition. The second phase was to dismantle the pipework and structures. There was still about 20,000 litres of fuel in the pipes that needed to be removed before this could happen. In order to

Adler and Allan provides Insight with a case study on the full end-to-end decommissioning of a fuel terminal asset.

he client, a large forecourt operator, approached us about the demolition of one of their assets. The main challenge was ensuring the site was safe to work in which required the removal of any remaining fuel from site. As the site was situated on a waterway, we also needed to ensure no contamination occurred. Due to the area being hazardous, CompEx electricians ensured that the site was safe, and free of live cables or other hazards. We also had a number of operators with confined space certification to carry out the tank cleaning.

Our response Due to the area being hazardous, CompEx electricians first ensured that the site was safe, and free of live cables or other hazards. The first phase was to remove all the residual fuel from the site, and carry out all the tank cleaning with confined space certified operators. Each tank had different fuels, including petrol, diesel and kerosene, and were capable of holding around five million litres of product. We drained all the tanks, took the fuel off site and then did

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do this, all the valves were dropped and each area was sucked out, once the fuel was removed, we used gas monitoring wands to ensure there was no gas left inside. This was done a few weeks before the demolition started to allow any residual vapours to vent away. In phase three we broke up the concrete and excavated the site. We also undertook ground testing and sampling to make sure there was no contamination. The fourth phase was to remove all the pipe work from under the jetty, grade the site, remove the remaining buildings, carry out final soil testing before handing the site back to the client.

The outcome The project was completed on time and on budget, safely and compliantly. We removed and disposed of all the waste liquid fuel, and managed the demolition of the physical assets. Our teams of highly qualified consultants and ecologists supported in the remediation of any contamination in the land, allowing it to be handed over primed and ready for redevelopment.

Adler and Allan has been a one stop shop from arranging the risk assessments and method statements at the start, right through to handing the land back to the client at the end of the project.

What the client said “The decommissioning of the fuel terminal is one of the most significant projects we have undertaken. Adler and Allan were selected based on their excellent safety record and historic quality of service delivery. Their ability to provide in-house expertise across multiple disciplines was reﬂected in their highly competitive costs.” Infrastructure Safety)

Manager (Health

The Adler and Allan Diﬀerence Adler and Allan has been a one stop shop from arranging the risk assessments and method statements at the start, right through to handing the land back to the client at the end of the project. Our in-house expertise has seen us deliver services from gas freeing and removal of fuel from the site, to CompEx electricians removing the electricals in hazardous areas, teams of highly qualified consultants and ecologists supporting in the remediation of contaminated land, and ultimately demolition.

For more information, visit www.adlerandallan.co.uk

We have a wide range of assets at our disposal from vacuum and fuel tankers for fuel removal, and demolition equipment for the breakdown of the tanks. We also have the infrastructure to get our people wherever they are needed, with depots and equipment nationwide.

I s s u e

A P P L I C AT I O N N O T E S : MEETING TERMINAL REQUIREMENTS FOR FUEL LOADING

The application team at Scully Signal discusses EN13922 Compliance with IEC61508 – Overﬁll Prevention and Grounding Veriﬁcation System Overview.

he ATEX Directive (ATEX) sets out the minimum safety requirements for equipment used in explosive atmospheres. However, it does not assess the safety function of the system.

The latest revision of BS EN13922:2020 now requires safetycritical components, such as overfill prevention sensors and loading gantry control monitors, to meet a minimum of safety integrity level 1 (SIL 1) according to IEC 61508 functional safety standard. It requires only selfdeclaration by the manufacturer, with no independent certification. IEC 61508 functional safety standards focus on the ability of the system to correctly perform its safety function, which should be certified by an accredited functional safety agency. The spill of hazardous liquids and the potential ignition of explosive atmospheres from static electricity pose two of the biggest hazards and risks in tank truck loading operations. Without provisions to prevent loss of containment and/or accumulation

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and uncontrolled discharge of static electricity, the risk of these hazards is often unacceptable due to the potentially severe consequences. To mitigate the risk, overfill prevention and grounding verification systems are utilized. They normally consist of one or more sensors, a logic controller, and a final control element to ensure operations remain safe, eﬃcient, and profitable. It is vital to have a solution that provides automatic protection by preventing spills, which can negatively impact personnel safety, the environment, and financial liability.

Application Notes To reduce risk, electronic safety systems designed to provide automatic protection against the above-mentioned hazards are selected and implemented.

Safety Directives and Functional Safety Overfill prevention and static grounding systems for tank truck loading should comply with the following directives and standards: •

ATEX Directive (ATEX): ATEX sets out the minimum safety requirements for equipment used in explosive atmospheres and is based on the IECex standards. Its purpose is to ensure equipment, such as overfill sensors and control monitors, cannot pose an ignition risk in an explosive atmosphere. ATEX does not assess the safety function of the

system, i.e., its ability to detect liquid product and stop product ﬂow. •

BS EN13922 Overﬁll Prevention Systems for Liquid Fuels: BS EN 13922:2020 overfill prevention systems for liquid fuels sets out the minimum requirements for the design of the system and components. This requires only self-declaration by the manufacturer. Independent certification is not required on the ability of the system to perform its safety function. The latest revision of BS EN13922:2020 now requires safety-critical components, such as overfill prevention sensors and loading gantry control monitors, to meet a minimum safety integrity level 1 according to IEC 61508 functional safety standard.

•

IEC 61508 Functional Safety: Functional safety standards focus on the ability of the system to correctly perform its safety function, i.e., detect the hazard and apply automatic protection, and ensure under fault condition that the system fails in a predictable and safe manner. An accredited functional safety agency should conduct a functional safety certification to provide impartial assessment of the safety system’s design and performance. This safety standard defines four levels of safety integrity, with each level

(1 to 4) providing a magnitude of risk reduction. The higher the safety integrity level, the lower the probability that the safety system will fail to carry out the required safety function. Functional safety assesses both systematic failures resulting from inadequate design, processes, and procedures by the manufacturer, as well as random hardware failures like electronic component failure. Systematic failures are assessed by conducting failure modes effects and diagnostic analysis and surveillance audits on the equipment manufacturer’s internal processes and procedures. A safety integrity level (SIL) is awarded for systematic capability. The higher the rating for systematic capability, the less probability of systematic failures in design by the manufacturer. Random hardware failures are assessed by proven in-use data and by conducting a failure mode effects and diagnostics analysis to assess hardware design and failure rates of electronic components. A safety integrity level is awarded, and the failure rates are published for each system component. The publishing of failure rate data for each safety-critical component allows end users to specify systems based on safety integrity and risk reduction. The entire safety system should be verified

to ensure the necessary safety integrity level and targeted risk reduction has been met. Probability of failure on demand should be calculated using the failure rates of each system component and other factors, such as proof testing. System components assessed and certified to IEC 61508 validate the equipment manufacturer’s declared level of safety, risk reduction, and reliability for their system—and provides a level of assurance to the user. Specifying systems with IEC 61508 functional safety certification ensures compliance with the minimum requirements set out in EN13922:2020, requiring overfill sensors and control monitors must meet and, if possible, exceed safety integrity level 1.

Challenges Design and manufacture key components to meet SIL requirements that normally consist of one or more sensors, a logic controller, and a final control element: •

•

The sensor detects the hazard, such as the level of liquid product in a tank truck compartment. The logic controller processes the signal from the sensor and decides what action to take. The control element — such as a loading pump, control valve, or preset meter — controls the ﬂow of product into the tank truck compartment.

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Solutions The Scully system provides two safety-critical functions: 1.

Detect liquid product filling beyond the safe fill level of the tank truck compartment to prevent loss of containment and resulting product spill. Verify and monitor the static grounding connection to prevent the accumulation and uncontrolled discharge of static electricity in explosive atmospheres.

Scully overfill prevention sensors are mounted in each tank truck compartment through an aperture in the man lid assembly and are set at a predetermined safe level. Static grounding connections are also made to the tank truck chassis to prevent the accumulation of static electricity during the loading process. Each overfill sensor is wired to the socket at ground level and provides the connection interface to the Scully Intellitrol® control monitor on the loading gantry via a plug and cable assembly. The Scully Intellitrol® automatically and continuously monitors each overfill prevention sensor and the static grounding connection during the loading process 30 times per second. Scully has been assessing and certifying against IEC 61508 for several years. The Intellitrol®2 controller and its sensors are certified as SIL 2 capable device and certain configurations of our ST-15 tank truck overfill system is certified as SIL 3 capable.

Key Beneﬁts Under any unsafe condition, such as wet sensor condition, loss of grounding,

or component failure within the critical electronic circuitry, the system will stop product ﬂow and shutdown the loading process. This automatic protection prevents both potential spills that can impact the environment and financial liability, and the ignition of explosive atmospheres from the uncontrolled discharge of static electricity, thereby ensuring operations remain safe, eﬃcient, and profitable.

Implementation Scully employs a consultative approach and provides customized solutions to meet each terminal’s unique needs and satisfy their requirements (e.g., loading capacity, regional certification requirements). This includes a site survey, equipment determination, project scope, and costs to deliver a turnkey proposal.

Summary Safety systems are vital in protecting people and the environment, ensuring operations are safe, eﬃcient, and profitable. Equipment manufacturers and end users should strive to design, manufacture, and specify systems to the highest possible levels of safety and certification. For more information on Intellitrol®2 and other Scully systems, visit www. scully.com. Scully Signal Company has over 85 years of Overfill Prevention Systems and electronic liquid handling experience, providing the ultimate dependability, service, and safety. Contact us today for support or questions about your terminal equipment, overfill prevention, grounding, and safety needs: www. scully.com. Tel.: +1 800 272 8559. Email: sales@scully.com.

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News

E10 petrol now being served at fuel pumps across Great Britain E10 has become the new standard grade of petrol across forecourts in Great Britain from 1 September 2021. According to the Department for Transport, E10 petrol – which is blended with up to 10% renewable ethanol and made up of materials such as low-grade grains, sugars and waste wood, making it greener than existing petrol – could cut transport CO2 emissions by 750,000 tonnes per year, which is the equivalent of taking 350,000 cars off of UK roads.

“Although more and more drivers are switching to electric, there are steps we can take today to reduce emissions from the millions of vehicles already on our roads – the small switch to E10 petrol will reduce greenhouse gas emissions as we accelerate towards a greener transport future.”

It is estimated that over 95% of all petrol vehicles are compatible with E10, with a small number of older vehicles, including classic cars and some from the early 2000s, still able to access E5 petrol in the ‘Super’ grade.

Motorists are encouraged to use the government’s free online E10 checker to see if their vehicle is compatible.

Transport Secretary Grant Shapps said: “Every journey matters as we drive forward the green industrial revolution, which is why the rollout of E10 is so important. It’ll help us cut road greenhouse gas emissions and meet our ambitious net zero targets.

In Northern Ireland, it is expected that the introduction of E10 will happen in early 2022, subject to legislative approval.

For more information about the announcement, visit https://www.gov. uk/government/news/fuelling-agreener-future-e10-petrol-availableat-pumps-from-today. To use the government’s free online E10 checker, visit https://www.gov. uk/check-vehicle-e10-petrol.

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KEEP CALMCLOUD AND CARRY ON of competence is critical. Therefore, we deliver this through our blended learning approach ‘On Your Site’, ‘On Our Site’ and ‘Online’.

Reynolds Training Services mix-in the best online training and competency tools with CALMcloud.

s we all know, the key to maintaining safe operations within the high hazard sector is the prevention and mitigation of our defined Major Accident Hazards. That’s not only a legal requirement and a moral imperative, it’s also the basis of good, safe and profitable business.

Competence is the principal quality we need to demonstrate our readiness to do whatever is necessary to keep our workers, our sites, our environment, our customers and the public safe. During our twelve years in business at Reynolds Training Services, the driving force behind everything we’ve done – and continue to do – is improving competence in the sector and providing the tools to help demonstrate this effectively. The simple fact is: competent workers are more eﬃcient and effective in their roles, so ensuring high levels of competence is in everyone’s interest. Providing ongoing development is crucial because the demonstration

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We take the decades of dedication and expertise offered by our staff at Reynolds - and tailor our training to deliver it at a company’s own site. We then add to that the real-world, hands-on experience offered by the resources at our state-of-theart National Centre For Process & Manufacturing training facility. Finally, we mix-in the best online training and competency tools with CALMcloud.

What is CALMcloud? The name CALMcloud stands for ‘Competency Assessment Learning Management in the cloud’. It is an online portal for training and for managing competence. We know that many companies in our sector face a complex problem in managing their employee and contractor training and occupational competence. Some of the questions they need to ask include: • • •

�Has everyone been trained to the same standard? �Are all certificates up-to-date? �Do we have records of all training undertaken, irrespective of supplier or platform?

All of which highlights the importance of being able to monitor the training levels within a workforce. Such

vigilance is crucial in ensuring there are no gaps in knowledge and skills which could, of course, impact on the safety of the whole terminal or refinery. The challenge is to keep track of renewal dates and monitoring occupational competence for multiple roles across multiple sites, for employees and contractors, all while keeping senior management informed with relevant and up-todate reports. CALMcloud is designed to encompass and easily track all staff training undertaken - including online training, videos, instructor-led training, competence assessment tracking and mentoring, along with tools that can track and monitor CPD (Continuous Professional Development).

they need to progress to the next step in their career. CALMcloud was built from the ground up to help employers address all of this in an eﬃcient and userfriendly way. We designed and built the system based on what we knew businesses and learners needed and in a way they could access it all simply and cost-effectively.

What CALMcloud oﬀers Companies experience several ‘pain points’ when managing their employees’ training and competency, so we looked to address those. That’s why CALMcloud’s features include: •

Keeping training records up-to-date can be an onerous task, since those records will inevitably be in different systems and from different suppliers. Gathering them all together in one monitored and updated place helps make life simpler for those tasked with managing the competence of their workers.

•

This can also be an effective tool for the career development of the workers themselves. Roles can be assigned to individuals, populating their training needs with the agreed training and competence requirements.

•

So, everyone knows what training

•

�Training materials are stored and accessible by authorised trainers, including PowerPoints, videos and pdfs. A � ll training records (including for attendance, feedback and written question papers) are easily associated with training sessions. �A comprehensive reporting system which provides real time customisable data, including the tracking of expiration dates, which makes the scheduling of training more eﬃcient. �Tracking progress of all learners against specific training goals and both internal and external standards. �Developing training for specific roles and associating this to relevant personnel, which then populates their training record

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with the required competencies. �An entirely cloud-based system which can be accessed 24/7 from any location or any device, by trainers, assessors, mentors, administrators and individuals, all of whom can access the same records and achievements easily and instantly and can even have a live view of progress being made.

All of which combines to help make the maintenance and management of competence a simpler, more eﬃcient and safer process. Which, in turn, can lead to greater process safety! To learn more about the innovations that we have pioneered at Reynolds training, why not visit us at www. reynoldstraining.com. And, of course, if you’re interested in learning more about CALMcloud and our commitment to competence, visit www.calm-cloud.com.

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PROCESS SAFETY COMPETENCE IS LIKE AN ICE CREAM…

Richard Roﬀ, Chair of the Process Safety Management Competence Programme Board, discusses competence in process safety management.

Richard Roﬀ, Chair, PSM Competence Programme Board

or this title, I have paraphrased that of a presentation I saw about 25 years ago which was probably already a reuse; readers may recognise the adage but if not, I will return to it later to explain. In this article I would like to discuss competence in process safety management and the need for organisations to keep returning to this.

Readers of Insight will already know that some of the hazardous materials stored for society and their quantities mean that catastrophic incidents could happen. In considering operations in the UK and across the world, such events have occurred in recent memory. This should prompt organisations to think about their continuing capability to manage those risks – asking “do we still have the right competence?” on a regular basis. Very many people are familiar with James Reason’s Swiss Cheese model: to prevent losses, several layers of protection or barriers are needed – although each has some unreliability,

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these are less likely to coincide, so reducing the chance of loss. In his images, Reason showed these as like slices of Swiss Cheese with holes as ‘unreliability’. When thinking about catastrophic incident hazards such as ﬂammable, toxic or ecotoxic materials then people ‘knowing what they are doing’ can be seen as one of those layers – a barrier to incidents. When broken down, such competence should include knowledge ranging from the material hazards through proper understanding of equipment design and operation, to the need for inspections and maintenance. It should also cover how to recognise when things aren’t going as expected and what to do then. Drawing these subjects together under the banner of process safety management (PSM) can give organisations an opportunity to help their people to understand the interactions between these aspects and how they deliver the outcome of safe and environmentally secure operations; it also allows consideration of all organisational levels from the most senior to the least. Many organisations have been prompted to embark on training or education programmes to build competent teams but these programmes are sometimes onceoff, sometimes covering much of the organisation but potentially missing newcomers or organisational change. This can also fail to account for physical changes to equipment or changes to business model.

Most safety-management theories recognise that barriers will begin to degrade and competence is no different; other priorities come up, training budgets can be reallocated, a critical mass of knowledge can remain but the hole in the Swiss Cheese layer is increasing in size all the while. Management can find out about this degradation through audit, but it can also be discovered through incident – usually adverse events and occasionally very serious. Organisations that deliver ongoing competence updates to their people will reduce the risk of the latter and probably reap benefits of more eﬃcient operations too as teams revisit the ‘right way’ and the reasons behind that. Senior management teams should ask themselves: • Am I (still) competent in process safety management as it relates to my business? • How do I know my teams are (still) competent? • What are our processes for maintaining competence over time and through change?

the Texas city BP disaster and the Buncefield fire at the Hertfordshire Oil Storage Terminal. The motivation for establishing the board was a desire to make business leaders in industries with potentially catastrophic incident hazards aware of their critical role in establishing a process safety culture with appropriate processes in their organisation. Senior leaders needed to better understand what PSM was, and their role in establishing those safe processes. These concerns were backed-up by the findings of the HSE in their investigations, which found a lack of knowledge and understanding amongst leadership teams.

• • •

Since then, the board’s vision has broadened to the following: that, through education, competence and knowledge of PSM techniques, all levels of staff understand what could go wrong in their organisation and their own part in delivering what must go right to prevent catastrophic incidents.

Finally, returning to the confectionery… process safety competence is like an ice cream - If you don’t keep licking it, you will have a mess on your hands!

If the answer to the first question is ‘I am not sure’ at best, then this can be a good place to start; after all, what interests the leaders will eventually interest the whole organisation.

I have chaired the board since 2015 and I would summarise our work as follows: trying to make sure that the lessons learned the hard way in the process industries are widely understood, and that information is easy for organisations to access, in the hope that they won’t have to learn the same way.

The UK PSM Competence Programme Board (of which TSA is a member) was set up in 2010, in the light of major incidents such as

The PSM competence programme now includes industry standards for competence in process safety management at three levels:

Leadership Management and engineering Operator and technician levels

Training that meets these standards is available for organisations of any size to access, in a manner best suited to their needs through Cogent Skills which has supported the board in its work since its inception. Whilst I recognise that training is available from many sources, if you think the programme could be valuable to you in upskilling your teams or maintaining your own, or their competence over time, please visit http://www. cogentskills.com/psmcpb/

Author Richard Roff CEng FIMechE, Group Process Safety Director for Costain, joined the PSM Competence Programme Board in 2014 and has been Chair since May 2015. The Board is made up of senior industry representatives and stakeholders from trade associations, professional bodies and the Health & Safety Executive. Richard is also a member of the technical advisory committee of the Hazards Forum. For more information about the PSM Competence Programme Board, visit www.cogentskills.com/psmcpb/. For more information about the Hazards Forum, visit www.hazardsforum.org

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C E R TA S E N E R G Y I S FUELLING FUTURES T H E R I G H T WAY: I N C O N V E R S AT I O N W I T H W I L M A K E L LY

ertas Energy is the largest independent distributor of fuels and lubricants in the UK, supplying commercial, agricultural, industrial and public sector customers as well as domestic customers nationwide. Wilma Kelly, HSE Director and TSA Vice President, explores Certas Energy’s ambitions for the future and highlights the innovation, partnership and expertise that will be key to drive success going forward.

Wilma Kelly, HSE Director and TSA Vice President, discusses Certas Energy’s objectives and ambitions for the future.

Wilma Kelly, HSE Director, Certas Energy

What are Certas Energy’s objectives and ambitions for the future? From new products and digital innovations to sustainability goals and future fuels, our objectives are firmly focused on driving our customers’ future. Indeed, our objective is always to deliver the energy that homes, farms, and businesses rely on, while responding to the changing needs of the market with innovative solutions. We provide a convenient supply of highquality, carefully sourced products

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while also offering expert advice for customers on the solutions that best meet their needs. Our ambition for the future is to continue enabling our customers to smoothly integrate alternative fuels, such as renewable liquid fuels as they manage their energy transition, and to become more environmentally responsible in ways that make sense for their business. Our Carbon Offsetting initiative, for example, allows our customers to invest in carbonreducing projects across the world, run by our partners at Carbon Footprint Ltd., in order to balance out their carbon footprints. We are continually innovating too, sourcing the latest fuel solutions that can help our customers achieve their emissions reduction goals while balancing their bottom line. Certas Energy’s parent company is DCC, a leading international sales, marketing and support services group operating in 20 countries with the purpose to enable people and businesses to grow and progress. DCC has identified four pillars for future sustainability reporting. Within each of these pillars there are relevant targets and metrics for nonfinancial performance. This reporting framework is aligned to the UN Sustainable Development Goals, as well as to relevant elements of the GRI and SASB reporting standards. And our strategy is structured around these four core pillars:

First, climate change and the energy transition, to help customers reach net zero by supplying them with renewable and lower-carbon forms of energy and by helping them become more energy eﬃcient. We will lead by example and have accordingly set targets to reduce our own carbon emissions to net zero in line with the Paris Agreement.

Second, the safety of the people we deal with and the communities we serve. We ensure this by operating safely and preventing pollution.

Third, the development of our people and, more widely, society. We contribute in this area by providing career and other development opportunities to a diverse range of people and by supporting selected community groups using our financial and non-financial resources. Fourth, our commitment to high standards of governance and compliance, which preserves our licence to operate, giving us the opportunity to add value to our stakeholders. We have identified a series of metrics, which are aligned to the UN Sustainable Development Goals and to SASB and GRI reporting standards, to measure our progress in these areas.

Indeed, at Certas Energy we know that being sustainable takes more than a policy and a sense of purpose, so we’re making sustainability a business reality. And we are committed to being a responsible business. Supply chain integrity measures, in line with modern slavery requirements, are at the centre of our efforts, and we are firmly committed to being a diverse and inclusive employer that empowers all colleagues to reach their full potential. In order to reach our ambitions for the future, we are also clear that membership in a trade association, such as the Tank Storage Association (TSA), provides us with a powerful industry-wide voice where and when it matters the most. At such an important time for the bulk storage and energy infrastructure sector, I have also recently taken on the role of Vice President of the TSA and have been working together with our members to champion this incredibly vibrant and innovative industry as it leads on the opportunities of tomorrow!

electricity to hydrogen and sustainable liquid fuels. Sustainable liquid fuels - particularly blended biofuels and synthetic fuels - will have a significant cross-sector role to play within the energy transition period and beyond. Against this background, the scale up and commercialisation of low carbon sustainable fuels is essential to reach net zero GHG emissions. Indeed, it is widely accepted that future transport solutions will encompass a wide range of technologies and that low-carbon sustainable liquid and gaseous fuels will play an essential part for sectors, for example, that have limitations in using electricity directly, such as some sections of long-distance heavy-duty on and off-road transport, as well as aviation and maritime transport, potentially making up a significant share of transport energy demand in 2050.

What is your outlook on the global bulk liquid storage market, its potential and growth drivers visà-vis other markets across the world?

The global bulk liquid storage market has incredible growth potential and there is a great deal of innovation taking place in the alternative fuels space. As the deadline of net zero carbon by 2050 draws closer, there are already several drop-in alternatives to diesel, such as Hydrotreated Vegetable Oil (HVO), for example, that are taking the spotlight as a solution to keep us all moving while reducing emissions.

As businesses navigate their path to net zero emissions, demand for bulk fuels will shift from fossil fuels to alternative energy sources, from

At Certas Energy, we are committed to fuelling the future success of our customers by helping them to navigate a successful energy mix transition. And

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we pride ourselves on offering fuel solutions that balance quality, value, safety, and sustainability, thereby contributing to the longevity of all the industries we operate in. We are on this journey together with our customers in the global bulk liquid storage market, and we work hard to support their growth with our expertise.

What are the opportunities and challenges that the post-COVID 19 period presents for the industry? At Certas Energy, safety has always been the number one priority across all our operations. For us, this means taking care of our colleagues and partners, as well as the environment in which we operate. When the COVID-19 pandemic hit, our safetyfirst mindset helped us to be prepared in the face of a new challenge. And we continue to reassure our customers with our commitment to safety – we have shown them what we do best! At the heart of our vision is a shared behaviouralbased approach to safety.

SAFETY F1RST VISION ZERO is the vision that brings all our divisions together as one business to create a world class health and safety culture.

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Right now, the challenge ahead is clear: as we strive towards net zero, the pace of change must be quick. New regulations, new fuels and new ways of working must all be integrated and fully understood to succeed and achieve net zero goals. For Certas Energy, as a fuel distributor, the challenge is to provide our customers with the best possible support to enable a smooth transition. In this light, we continually strive to improve and to provide the products and services that industry can rely on and grow with.

In the context of the Energy Transition, what are the biggest challenges in terms of maintaining safety and environmental performance whilst meetings the UK Government’s objectives for Net Zero? The enduring principle of health and safety law is that those who create risks are best placed to control them. Therefore, robust risk assessment and sound health and safety credentials will be vital to technologies and products’ ability to gain the confidence crucial to their successful introduction and expansion. In this context, with future solutions expected to encompass a wide range of low-carbon technologies, a supportive and wellinformed policy framework will be key to drive success and to meeting the UK Government’s objectives for net zero. Meanwhile, industry must continue to seize the opportunities of tomorrow by driving the development of low-carbon vehicle technologies. Against this background, it is vitally important that we have the right combination of skills, knowledge and expertise to deliver on future opportunities. In addition, as many of the health, safety and environmental hazards will have been encountered in other environments, we collaborate with our partners, developers and other industries to ensure we put safety first. For Certas Energy, in the context of safety and environmental

performance, this means agility to adapt to a new energy mix, one which is as diverse as our customer base. It also means adapting to new regulations in safety compliance as well as adapting our operations, infrastructure, and investment programmes to introduce new products and services.

How can the industry ensure that the opportunities for the future can be seized? At Certas Energy, we believe that collaboration is the key to success. We see it as essential to work cooperatively with government bodies, suppliers, customers, and industry peers to develop an aligned and long-term approach. Indeed, knowledge-sharing and education are invaluable tools that help us all to develop the skills we need to keep the liquid fuels and bulk liquid fuels storage industries thriving. Only then can we source the solutions fuel that our customers are looking for and optimise those fuels for accessibility and performance, even after long periods of storage.

With a culture of strong safety and compliance principles, Certas Energy is leading from the front. Tell us more about the SAFETY F1RST and Doing the Right Thing Initiative.

that brings all our divisions together as one business to create a world class health and safety culture, in which every single individual works towards our goal of Zero harm. At the heart of our vision is a shared behaviouralbased approach to safety. Using the SAFETY F1RST principles already embedded in our business, we have refined our approach to HSE awareness and compliance to drive greater individual understanding and a shared responsibility. This means Zero Harm to our people, to our business, to our communities and to the planet. Health and safety not only begins with the right rules, regulations, and standards, but, crucially, with the right mindset. To support our SAFETY F1RST VISION ZERO initiative, we have recruited an extended team of SAFETY F1RST Champions right across our business. We are also part of the Institution of Occupational Safety and Health’s (IOSH) Vision Zero campaign aimed at eradicating all work-related injuries and illnesses. And we are asking everyone to play their part, to speak up, to inspire others and to lead by example!

For more information about Certas Energy, visit Why Certas Energy: https://certasenergy.co.uk/mybusiness/why-certas-energy/

We have recently launched SAFETY F1RST VISION ZERO. It is the vision

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BULK LIQUID STORAGE TERMINAL TECHNICIAN APPRENTICESHIP PROGRAMME

The Oil & Pipelines Agency and Exolum now have two groups of apprentices who have gone through the Bulk Liquid Storage Terminal Technician (BLTT) training process. Left to right: Calum Cook (OPA), Rain San Pedro (Exolum), John Williams (Exolum), Fraser MacBrayne (OPA), Stuart Adams (OPA).

e have been very impressed by the quality and delivery of the apprenticeship and we firmly believe that the quality and experience of our newly qualified BLTT apprentices will be a great asset to our business. They will help us to ensure that we continue to grow and develop new talent to take on critical operational roles. There is no other apprenticeship available which has been designed by the sector (through TSA) that delivers the skills that our sector industry desperately needs.

We have invited OPA and Exolum apprentices to talk about their experiences of the BLTT apprenticeship to enable readers to appreciate how invaluable this apprenticeship is the to the industry.

Calum Cook, OPA Technician Apprentice

Operator

I was employed by the OPA in June 2019 under the role of apprentice operator technician at Campbeltown. I felt that this was an excellent opportunity for a young person who had just finished school and

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was looking for a career in my local area. When I first started with the OPA, I completed three months learning and gathering experience and learning from my fellow employees on site. This helped me gain an understanding of the OPA and the type of work they do. Then in September 2019, we started our apprenticeship training at the CATCH facility near Grimsby with Reynolds Training Services. Our apprenticeship was split into three phases with phase one focusing on health and safety, phase two focusing on terminal operations and plant and equipment and phase three being our Bulk Storage Operator Technician (BSOT) qualification with it being split into two parts, the knowledge side, and the competency side. “This apprenticeship has given me important skills which I can build upon throughout my career in an industry which is ever changing and improving.” “I would also like to thank the OPA for giving me this great opportunity at such young age and for their support and trust that they have given me throughout this apprenticeship. I would highly recommend this apprenticeship scheme to other companies in this industry to put apprentices through as the service that Reynolds Training Services provides is not only very professional but gives you the best start to your career in this industry.”

Fraser MacBrayne, OPA Operator Technician Apprentice I am currently an apprentice operator for the OPA at the Campbeltown Depot. I am currently completing the last few weeks at college before I conduct my End Point Assessment which would mean I will have finished my apprenticeship. When the job was first advertised, my first thought was what a great opportunity! I found it very interesting to know I would be working alongside the MOD and fuelling the Navy. Coming straight out of my physics exam in school to getting a phone call asking if I wanted the job was very surreal thinking of my career ahead. I was very excited to start my new job with the OPA and I’m very glad to have been given the opportunity. I then started my college a few months in down at Reynolds training centre in Grimsby. This was a big change for me because I was leaving home at 16 and being away for several weeks at a time. Although this was a great learning experience for me being able to do this and live away. I learnt so much while I was at the training centre and being able to take all the knowledge I had learnt back to site and use this in my hands-on training on site. Through the BSOT (Phase three) knowledge questions were conducted at home throughout the pandemic which made things a little harder having to do online training. A

few months down the line we were then called back to site which was a lot better because we could continue our training and following our mentors round site. It was then time to travel back down to the training centre and finish our BSOT performance which was very good because we were able to use the new BPCS system and perform transfers on the plant. Once we had finished our BSOT performance we then looked into our End Point assessment which is my end goal to complete the apprenticeship and be fully qualified. My next steps for looking towards the future, is to continue my training and gain experience on site to widen my knowledge.

Rain San Pedro, Exolum Operator Apprentice Before starting my apprenticeship with Exolum, I had very little knowledge about the bulk storage industry and how fuel is transported around the country. When I was offered the opportunity to become an apprentice with Exolum, I was ecstatic and keen to start my new career. The beginning of the apprenticeship was mainly classroom based and we were shown multiple presentations that highlighted the importance of Health & Safety within the industry and the major consequences that could happen. During this time, I was trained in using different types of hazard identification techniques used

Rain San Pedro, Exolum Operator Apprentice

mainly in the downstream industry that highlight/identify hazards and controls. At the training facility, I frequently used the replicated Storage Tank Farm. The Tank Farm is commonly used for training purposes and helps apprentices become familiarised with signs, equipment, procedures, etc. Occasionally, during the training, to demonstrate that I had fully understood, the assessor would conduct a visual assessment and I would have to conduct the task that had been given in the Tank Farm e.g. risk assessments, isolation, use of equipment. Since joining the Exolum scheme, I have gained deeper insight into the downstream industry by understanding the major

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consequences that can happen which can vastly damage the people, the environment, assets and the reputation of an organisation. For this reason, equipment on sites is regularly maintained and professionally serviced to meet the Competent Authority’s regulations, helping to eliminate/reduce leading indicators. As the apprenticeship scheme progresses, the visits to sites have provided me with more familiarity within the bulk storage environment and the various equipment used in the industry. Exolum has opened opportunities that have helped me gain valuable skills and knowledge that will massively benefit me throughout my life and career. For further information visit: https://exolum.com/en/careers/

Stuart Adams, OPA Operator Technician Apprentice. “Overall, I feel that the apprenticeship has provided me with a great job in my local area and great training that I wouldn’t be able to get anywhere else.”

OPA

Operator

I am an apprentice operator for OPA at their Loch Striven depot near Dunoon on the west coast of Scotland. I decided to apply for the role because it looked like a good opportunity in my local area for someone to work while receiving training at same time. I also applied because I thought it looked interesting due the amount of ships that come into our depot and getting to work with them and being able to see what they do. These are the main reasons why I applied for the job which I was lucky enough to get.

Odisquasit as quo cus, iunt re labo. Nam iuriosa alitate mporitaerci autempe invelis dolorro blaborero et inciis voloreruptat exeri

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Stuart Adams, Apprentice

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I started with the OPA in June 2019 which gave me 3 months site experience before starting my apprentice training in September. I felt these 3 months on site, before starting my training, was helpful as it gave me a good amount of background information before starting my training. The apprentice training has been conducted by Reynolds training services which is situated just outside Grimsby in North East Lincolnshire. The apprenticeship is split into 3 phases, with phase 1 taking place from September to December of 2019. During this phase we learnt about high hazard industries and real work environments, Process operations, equipment and engineering basics, industry related hazards and risks, process variables and process calculations. Through phase one, I felt that I really gained a lot of knowledge bout how a fuel terminal is run. The training in phase one has also really made me aware of the hazards and risks of where I work and why it is important to always follow procedure and to always wear the correct PPE. Phase two started in mid-January after we had time home around Christmas and New Year. Phase two was much more about terminal specific knowledge and types of operations that take place on site. For example, we learnt about Tank farms, jetties, interceptors, vapour recovery

units and how to conduct tank and pipeline inspections. To do this training we used the small plant area that there is at Catch. This was helpful as it is the same as any fully operating tank farm but just on a smaller scale but all the principles for how it works is the same. We also visited Exolum Killingholme and both east and west terminals of Inter terminals. I found these particularly helpful as I could see what we were learning about in the classroom on a fully operational site as it was working. For example, at Exolum Killingholme, we were able to conduct a pipeline inspection on a pipeline that is fully operational and is used on a regular basis.

Knowledge and Competency, this meant that we could start the knowledge section while still at home. This is as far as we have got on our apprenticeship.

Overall from phase 2, I learned a lot about specific equipment on site and how they should be operated and how to conduct testing on specific equipment and what to do if you don’t get a result you are looking for. Unfortunately, we didn’t get to go on as many site visits as we should have done due to the Coronavirus pandemic. Due to the Coronavirus we all had leave the training centre at CATCH and return home, but we were able to continue with our class room learning by using Microsoft Teams. This was essential as it meant we did not fall behind with training.

For further information, visit: https://www.cloudonlinerecruitment. co.uk/oilandpipelines/

Overall, I feel that the apprenticeship has provided me with a great job in my local area and great training that I wouldn’t be able to get anywhere else from trainers that have a vast range of knowledge and experience in this industry. I would encourage any young person that has an opportunity to apply for an apprenticeship similar to mine to do it as, you get a job and an education of that job at the same time.

John Williams, Exolum Operator Apprentice

Phase 3 is also known as the BSOT level 3 Diploma. We started this at the beginning of June 2020 while still working from home. As the BSOT level 3 Diploma is split into two sections,

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UM TERMINALS MEETS CUSTOMER NEEDS WITH I N D U S T R Y- L E A D I N G A C C R E D I TAT I O N S

UM Terminals has secured two important accreditations as part of its ongoing commitment to meeting customer needs.

Jo Winning, UM Terminals’ Quality Planning & Performance Manager

M Terminals has secured two important accreditations as part of its ongoing commitment to meeting customer needs. The bulk liquid storage specialist is now Halal certified at its Regent Road facility in Liverpool.

It has also successfully completed the accreditation process for FSSC 22000, the certification scheme for Food Safety Management Systems, for its Regent Road and Gladstone Dock sites. The scheme uses international and independent standards such as ISO 22000 and ISO 9001 as well as technical food sector requirements. Jo Winning, UM Terminals’ Quality Planning & Performance Manager, said: “We are delighted to have secured both the Halal certification and the FSSC 22000 accreditation. It is important for our customers that we not only maintain our existing accreditations, but also look to add to them where appropriate. The process

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M AG AZ I N E

of gaining the Halal certification was in direct response to a request from a major existing customer to meet a new food storage requirement that they had. We had to undertake a considerable amount of training and worked closely with the Halal Food Authority to ensure that we were able to meet strict criteria.” Jo, who first joined UM Group in 2007 and later specialised in Quality Management, said: “It is essential that we have the best possible Quality Management systems in place and ensure that we have all the required accreditations and certifications governing the products that we store for our clients.”

“It is a continual process of learning and auditing and, as with the case of the Halal certification, innovating where appropriate to meet new requirements of our customers. We can never rest on our laurels. A lot of the certifications need to be renewed on an annual basis. It is also not just about gaining the various accreditations – it is also about ensuring that our colleagues have the necessary training and development to be able to ensure that the various standards are adhered to. It is a real team effort.” Vic Brodrick, UM Terminals’ Commercial Director, said: “As a business, we are committed to a continuous programme of investment

UM Terminals has completed the accreditation process for FSSC 22000, the certiﬁcation scheme for Food Safety Management Systems, for its Regent Road and Gladstone Dock sites.

to guarantee that UM Terminals is best placed to meet the needs of our customers today and tomorrow.” In addition to the new Halal certification and FSSC 22000, UM Terminals is ISO 9001:2015 accredited. The company also holds various industry assurance schemes including UFAS (Universal Feed Assurance Scheme) and FIAS (Fertiliser Industry Assurance Scheme). It is also COMAH accredited for terminals handling hazardous liquids. UM Terminals operates out of 8 terminals, strategically located across the UK, handling over 40 different products. It currently has a capacity of over 300,000 cubic metres of bulk liquid storage, but the plan is to grow this to over 400,000 cubic metres. Product solutions include vegetable oils, industrial, food and feed, chemical, fertiliser, fuels, biofuels and base oils.

For more information, visit www.umterminals.co.uk

The company, which employs 63 people, rebranded from UM Storage to UM Terminals last year to better reﬂect the range of services the company offers its clients. It is part of the UM Group which has a distinguished history stretching back almost 100 years.

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Place yourself at the heart of the leading bulk liquid storage event

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M AG AZ I N E

TSA oﬀers a range of membership beneﬁts, including weekly political and media updates sent directly to your inbox.

TSA

Tank Storage Associa on

To receive all the latest information, news and guidance, visit www.tankstorage.org.uk/join-us

To ﬁnd out more, write to info@tankstorage.org.uk

Join the voice of the bulk storage and energy infrastructure sector TSA champions the UK’s bulk storage and energy infrastructure sector and its role in supporting growth and prosperity. We have several membership levels available for bulk liquid terminals, distribution terminals and hubs, as well as equipment and service suppliers. Join us. Choose your membership at www. tankstorage.org.uk/join-us

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TSA

Tank Storage Associa on

The voice of the bulk storage and energy infrastructure sector

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T. +44 (0)1462 488232 Follow us

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SUSTAINABILITY 39

the UK, such as Whitetail Clean Energy. In these projects, nearly all air emissions, including traditional pollutants and CO2, are eliminated and pipeline-quality CO2 is produced so that it can be captured and stored offshore. Produced hydrogen, CO2 or ammonia can then be transferred to a Navigator Terminals location before onward transfer by ship or pipeline to its destination, such as one of the UK carbon storage sites.

IN THE QUEST to reduce carbon dioxide (CO2) emissions, an important element of the move to a decarbonised industrial world, one solution is to capture what would otherwise be fugitive emissions and either store or, ideally, use that CO2 in downstream processing. While there are many carbon capture, utilisation and storage (CCUS) projects in development, a significant hurdle is the lack of suitable infrastructure. Navigator Terminals, which operates four bulk liquids storage facilities in the UK, has now signed a memorandum of understanding with Zero Degrees Whitetail 1 Ltd, a subsidiary

explore potential collaboration in the storage and transport of chemicals and gases, including CO2 as well as hydrogen and ammonia, in the UK. Under the terms of the agreement, the project team will explore the potential for Navigator Terminals’ existing and potential future network of storage assets across the UK to accommodate the growing demand for transport and storage of CO2, hydrogen and ammonia as part of the wider growth of geological sequestration of carbon emissions. Navigator Terminals says its Teesside facility

IT TAKES TWO “This partnership signals the latest step in our commitment to support the UK to develop world-leading carbon capture capabilities through commercialising innovative power generation projects such as Whitetail Clean Energy, as well as innovative hydrogen technologies, ensuring that near all air emissions are eliminated and pipeline-quality CO2 is produced so that it can be captured and stored offshore, for Net Zero emissions,” says Cam Hosie, CEO of 8 Rivers Capital. “But once the CO2 is captured, we need to explore, understand and deliver infrastructure to support these assets to successfully transfer, transport and store CO2 for transport to permanent storage locations. Navigator Terminals is a leading UK terminal operator and has recognised the significant potential of CO2, hydrogen and ammonia transport in the coming decades.” Jason Hornsby, CEO of Navigator Terminals, adds: “We are focused on supporting our regions to decarbonise and utilise the highest quality fuels and energy carriers and, as part of supporting the UK to reach Net Zero, we are adapting to the changing needs of our local industries. We recognise that in the coming decades there will be significant volumes of CO2 to be shipped for storage and this partnership with 8 Rivers forms the first

of US-based investor 8 Rivers Capital LLC, to

in the north-east of England, which is fully integrated into the UK’s largest chemical cluster, can rapidly scale to support deep decarbonisation of these carbon-intensive industries. 8 Rivers is leading the development of the initial net zero emissions power stations in

step in understanding and then deploying the infrastructure needed to help the north-east meet its decarbonisation goals, creating significant jobs and supply chain benefits in the process.” www.navigatorterminals.com www.8rivers.com

BACK IN THE GROUND CARBON CAPTURE • IN A NET-ZERO WORLD, CARBON SEQUESTRATION WILL PLAY A MAJOR ROLE – BUT WHERE IS THE INFRASTRUCTURE? 8 RIVERS AND NAVIGATOR ARE LOOKING AT THE PROBLEM

 IN A DECARBONISED WORLD, EXISTING TANK STORAGE INFRASTRUCTURE WILL HAVE AN IMPORTANT ROLE TO PLAY

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AHEAD OF THE PACK HYDROGEN • IF HYDROGEN IS TO PLAY A MAJOR ROLE IN THE ENERGY TRANSITION, IT WILL NEED TO BE MOVED BY ROAD. HOYER EXPLAINS HOW IT ALREADY AN EXPERT IN THAT FIELD GREEN HYDROGEN HAS been identified as a key feature of the move to carbon neutrality by many countries, pointing to a significant increase in global demand over the coming years. That will inevitably place new demands on logistics providers and transport infrastructure. The Hoyer Group already has plenty of expertise in the sector, having handled hydrogen in both cryogenic and compressed

make-up, not all hydrogen is the same: colour codes are used to differentiate grades by their production process, including hydrogen derived from fossil energy sources. However, only hydrogen produced by the electrolysis of water using renewable energy can be counted as emission-free. But whatever the source, the way hydrogen is turned into a liquid calls for specialised equipment for transport and storage.

forms for more than 40 years. As such, it says it is well equipped to face the development in the best possible way. Hydrogen is already in use as a fuel for heating and engines, and as a raw material for the chemical industry. Hoyer explains that, despite the simplicity of its chemical

So, while there is growing momentum for long-haul movement of green hydrogen from sources of renewable production (i.e. in areas where there is plentiful solar or hydro-electric power capacity) to areas of demand (mainly in the developed markets), there will also be a need for regional distribution, as well as the

HCB MONTHLY | OCTOBER 2021

local transport of domestic output. In the latter case, transport is currently carried out mainly by road. Indeed, the Hoyer Group has some 100 trucks already operating in its core market in Europe, delivering both compressed and cryogenic hydrogen for its customers. “At the moment, under contract to our gas customers, we deliver mainly to the chemical industry. However, we assume that foreseeably the transport sector will catch up, and our service station logistics will come into greater use,” says Anna Krüger, head of business development in Hoyer’s Gas Logistics division. LEVERAGING EXPERIENCE Planning and implementing a logistics supply chain for hydrogen is little different to the process for other, more easily carried liquid products. However, that supply chain needs to be dedicated and properly arranged. As Krüger explains: “Our drivers are trained for specific products. Handling [compressed and cryogenic hydrogen] certainly counts as one of the supreme disciplines among gases. We rightly have an excellent reputation based

SUSTAINABILITY 41

on our many years of experience, our intensive training policy and our high safety standards.” In addition, Hoyer’s wide portfolio of services covers not only transport but also fleet management – including the servicing and maintenance of highly specialised equipment – loading and unloading concepts (such as ‘drop and swap’), leasing options, supply chain optimisation and project development. But, while Hoyer has extensive experience in handling the existing hydrogen supply chain, the further development of the use of hydrogen as a critical success factor in decarbonising industry and transport presents further challenges. Björn Schniederkötter, CEO of the Hoyer Group, is up to those challenges, saying: “We look forward to this development with excitement. Many changes lie ahead through the increased use of hydrogen, which we can and will accompany and support through our know-how. We see this market as one of our central growth areas, and we are ready for it.” INTERNAL AFFAIRS While on the one hand putting its expertise on offer to help the wider industry and transport sector play its part in the move to a decarbonised future, Hoyer is also looking at its own operations and finding ways to reduce its internal emissions footprint. It already has 25 gas-powered trucks in use in Europe to

“HANDLING COMPRESSED AND CRYOGENIC HYDROGEN COUNTS AS ONE OF THE SUPREME DISCIPLINES AMONG GASES”

deliver gases and petroleum products, fuelled by LNG and CNG, to meet its own targets for sustainability as well as those of its customers. The first of these arrived in the fleet in 2018 and it continues to expand its use of the new units. “We want to expand this fleet even further. Our customers are also very interested in making progress together on the topic of sustainability,” says Krüger. “Reducing the CO2 footprint concerns us all, which is why we also attempt to offer CNG, LNG or biofuel as alternatives wherever these are possible, sensible and available.”

Indeed, Hoyer deploys its gas-powered fleet in different ways. They cannot take over completely, as the necessary fuels are not widely available at existing service stations, although expansion of that LNG fuelling network is expected in the near future. As it grows – combined with the exemption from tolls on Germany’s highways for gas-fuelled vehicles – Hoyer expects wider deployment, despite the higher costs of acquisition and maintenance compared to conventionally powered trucks. Hoyer uses its LNG-powered units for high power demands in tanker transport, while the CNG trucks are smaller units – up to 7.5 tonnes – used for local transport of petroleum products. LOOKING AHEAD It is not just road-going vehicles in the Hoyer fleet that are being updated to alternative fuels; Hoyer has deployed electric power in its stackers used for in-plant and on-site logistics. Most of that fleet is now fitted with lithium ion batteries, which eliminate the need for time-consuming battery changes as they can be charged rapidly during short work breaks. The built-in lithium ion batteries have an average working life of ten years. As Krüger suggests, Hoyer is also watching the development of hydrogen as an energy carrier. Procurement manager Johan Witteveen explains: “We expect that hydrogenfuelled trucks will also play a part in future, since they operate without any emissions. What is not yet available, however, is their dangerous goods approval, which is essential for Hoyer.” The company is already in discussions with truck manufacturers with the aim of developing compliant vehicles as soon as possible. Once they are available, hydrogen will complete Hoyer’s circle of sustainability efforts and specialist expertise in relation to gas as an energy carrier. www.hoyer-group.com

 HOYER NOT ONLY SPECIALISES IN CARRYING GASES, IT IS ALSO MAKING MORE USE OF THEM AS FUEL IN ITS OWN EUROPEAN TRUCK FLEET

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42 SUSTAINABILITY

GOOD FOR YOU TECHNOLOGY • SUSTAINABILITY IS OBVIOUSLY GOOD FOR THE PLANET BUT IT CAN ALSO BE GOOD FOR THE BOTTOM LINE, ODYSSEY LOGISTICS & TRANSPORT BELIEVES ODYSSEY LOGISTICS & TECHNOLOGY has launched the new Odyssey Cloverleaf™ programme, which is based on the belief that sustainability can increase economic value for shippers and carriers, while simultaneously allowing everyone involved in the supply chain to become better stewards of the planet. Odyssey says the system is already on target to reduce carbon emissions by more than 300,000 tonnes this year, by drawing together a wide range of current and emerging technologies to uncover new ways to measurably advance sustainability while also reducing costs, improving margins and better serving each organisation and person along the supply chain.

food, medicine and other essential goods.” “We’re researching smart, new paths for supply chain sustainability,” says Bob Shellman, president and CEO of Odyssey. “Cloverleaf is a science-based program dedicated to the belief that sustainability done right benefits the environment and can be an engine for growth. We’re applying electrification, artificial intelligence, analytics, IoT connectivity and other emerging technologies to measurably move us towards a carbon-neutral world.”

“Designed and executed properly, sustainability does more than protect and improve the environment,” the company says. “It helps our customers and carrier partners build stronger, more profitable supply chains — and all the while providing people in every all parts of the world dependable access to

Cloverleaf program. First, Odyssey’s sustainability specialists and customer/

HCB MONTHLY | OCTOBER 2021

PACKET OF THREE There are three components to the Odyssey

 ODYSSEY IS EMPLOYING A RANGE OF TECHNOLOGIES TO IMPROVE ENVIRONMENTAL VISIBILITY

carrier teams calculate emissions and other key metrics in real time using advanced data collection tools and the European Chemical Industry Council (Cefic) and European Chemical Transport Association (ECTA) guidelines. Second, Odyssey integrates economic, operational and sustainability goals to provide optimised recommendations for day-to-day operations and long-range planning. Strategic consulting and education are also offered to help shippers and carriers develop effective sustainability policies and practices. Third, Odyssey explores innovative applications of electrification, alternative fuel vehicles (AFVs), internet of things (IoT)-enabled devices, predictive/prescriptive analytics, telematics and other evolving technologies to enhance customers’ supply chains. “Sustainability is a top initiative in all parts of our organisation and supply chain and logistics are no exception. It’s important we have partners that share in our vision for a sustainable future,” says Johan Neuteboom, director of supply chain management, North America at DSM Nutritional Products. “We view Odyssey’s investment in the Cloverleaf program as a clear demonstration of that shared vision.” Odyssey has invested heavily in the technologies behind the Cloverleaf program and actively participates in the US’s SmartWay Program, Europe’s GreenFreight and other government-sponsored initiatives. Odyssey says it will continue to increase its investments in the technologies, processes and information that will lead to smart new paths for sustainability and economic growth. Based in Danbury, Connecticut, Odyssey Logistics & Technology has grown from its origins in North American chemical transport to its current position as a global logistics solutions provider; as such, its success depends on its ability to improve its customers’ supply chain performance through its predictive global technology platform, its international network of logistics engineering experts and its specialised processes that help drive quality, safety and sustainability. The Cloverleaf program fits into that suite of expertise. More information can be found at www.odysseylogistics.com/project-cloverleaf/.

44 SUSTAINABILITY

SUSTAINABILITY BEGINS AT HOME ENERGY EFFICIENCY • FORT VALE’S GRAHAM BLANCHARD CONSIDERS IT VITAL THAT AN INDUSTRY NOT KNOWN FOR ITS GREEN CREDENTIALS GETS ITS COLLECTIVE ACT TOGETHER ENERGY SELF-SUFFICIENCY and sustainability are particularly hot topics at the moment - global temperatures vary alarmingly, unseasonal heatwaves followed by flash floods are becoming almost commonplace, storms lash places that haven’t been lashed for some considerable time. To the layman, it’s all becoming a bit confusing. What is apparent though is that, in a period of energy insecurity, it makes sense for industry to utilise whatever resources it has and to harness available technology in order

in 1967, we have grown from a tiny business with one product to a world leader in the safe transfer of liquids, powders and gases. Sustainability is common sense, and essential for the successful development of our business. We have found that detailed forward planning has allowed us to make some major adjustments, and many minor ones, which in turn add up to a significant reduction in our carbon footprint.

to maintain its energy security - the more energy you can produce yourself, the less likely you are to suffer from shortages from outside suppliers. At Fort Vale, we strive to be as energyefficient as possible in order to reduce our global carbon footprint. Since our first sale

For example, we began using solar panels in 2015 and have continued to factor them into every main building on site since then, which

HCB MONTHLY | OCTOBER 2021

GOING GREEN FOR GROWTH

 FORT VALE’S UK MANUFACTURING BASE HAS BEEN DESIGNED WITH SUSTAINABILITY FIRMLY IN MIND

means that we now have a total of 4,115 panels in use - a useful power source, even allowing for the unpredictability of constant sunshine in the north-west of England. We also have advanced plans in place to make our site totally energy self-sufficient in the near future, utilising solar and wind power (when the sun stops shining up here, you can guarantee that rain and windy conditions won’t be far behind!), as well as water collection on site which feeds into our ‘alternating building management system’. We offset any carbon emissions by planting trees - nearly 4,500 in 2021 alone. Minor adjustments tend to be similar to the ones we are encouraged to make at home but, taken as a whole, are surprisingly effective: staff are encouraged to use electric vehicles if possible, and we provide car-charging ports on site for employees and visitors; we use LED energy saving lightbulbs in all our buildings; we recycle and re-use all scrap metal generated on site; we even ensure all computer and electric equipment not in use is switched off - it all makes a difference! Personally, I think that energy security is going to become an important issue over the next few years, and any progress we can make as a company (and an industry) with regard to sustainability is to be welcomed. It’s not just common sense, it’s good business sense. www.fortvale.com

TANKS & LOGISTICS 47

FEW OF US WOULD have predicted the magnitude and direction of changes we are seeing in the current global markets and that the pandemic would be the catalyst for the current levels of consumer demand we are witnessing. While multi-faceted lack of capacity within the global supply chain has contributed to the situation, we must remember that the greatest cause of pressure is the magnitude of this increased demand. Before we repeat mistakes, we should learn from the boom prior to 2008 and the errors made coming

demands with long-term solutions only leads to unsustainable over-capacity. Between 2012 and 2019 the global supply chain was on an ever-unstable course, while shippers benefitted from the rates caused by this instability. It was always going to end with market changes, the pendulum swinging, catching shippers, consumers and economies by surprise. This period of increased unsustainability was not the responsibility of shippers, who took advantage of the market, but by the lack of foresight of the many suppliers making up the supply chain.

are now placing increasing orders for new vessels, though they seem to have learnt from the past, keeping an eye on global capacity. But the supply chains are not just made up of ocean carriers. What are the terminals doing, truckers, depots, container manufacturers, warehouses, and the myriad of forwarders and agents? To what degree do we invest and grow when the demand we’re seeing is guaranteed to reduce substantially in the future? Prior to the pandemic most conversations on sustainability referred to the environment. While governments are discussing new ‘green’ policies, there is fanfare leading up to the UN Climate Change Conference (COP26), and the ‘average man in the street’ has a greater appreciation of their environment, what actual changes are being implemented in our supply chains? Yes, the carriers have made changes, from slow steaming to the global limit on fuel sulphur content. For the majority of us, though, other than the usual ‘doffing of the cap’, not much is actually changing, yet there are options open to us. From a completely biased point of view, many shippers are still choosing to use less environmentally friendly means of transporting their bulk liquids than the humble tank container. The relatively small cost savings might give a short-term advantage, but does this lead to a sustainable environment in the medium to long term? As part of the supply chain none of us can leave the long-term projections and hard choices to the carriers or large players, we each have a responsibility to look to the future and make the right decisions. The pendulum has now swung: we have under-capacity for the current level of demand, but we know that a correction is inevitable. What have we learnt from the last

out of that financial crisis. Responding to unsustainable short-term

On being asked recently by a shipper when I thought we’d return to the good times of low rates, I explained that there was a problem in that rates were not low but cheap. Cheap and unsustainable. The failings currently being felt are partially a result of these ‘good times’ causing the lack of incentive to invest. Carriers

decade? Either way the market is unsustainable at the extremes. As individual pieces of the chain we need to find an equilibrium, be sustainable, and responsibly play our crucial role in linking the global economy together. www.mslogisticsltd.com

WE REAP WHAT WE SOW MARKETS • DAVID KEW, MANAGING DIRECTOR OF M&S LOGISTICS, GIVES US HIS ANNUAL VIEW OF MARKET DEVELOPMENTS AND WHAT WE CAN LEARN FROM THIS YEAR’S DISRUPTIONS

 LOW RATES IN THE PAST HAVE LED DIRECTLY TO A SHORTAGE OF CAPACITY IN THE PRESENT

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SPINNING PLATES HSE • MAINTAINING TOP QUALITY IN SAFETY AND COMPLIANCE WHILE RUNNING A COMPLEX OPERATION IS QUITE A CHALLENGE, AS DEPOT OPERATOR SAHREEJ EXPLAINS “LOOKING BACK AT our health and safety programme, we can proudly say that we have come a long way – but more is yet to come,” says Faris Al-Shali, HSE manager at Kanoo Tank Services (Sahreej) of Saudi Arabia. “We are proud to be ISO 9001, 14001, 45001-certified and SQAS-assessed.” While this shows the commitment of Sahreej to the well-being of its staff, it also highlights the management’s commitment to the environment and to the quality of the services it provides. But compliance with standards can become

ensuring requirements are met and improvement opportunities are communicated to senior management,” says Al-Shali. “Also, having safety officers in all Sahreej depots continues to make a difference.”

a challenge if it becomes a burden to the efficiency of operations and Sahreej has countered this challenge with a range of control methods, starting from the annual internal audits that trickle down to daily check-list reports. “This is accomplished by having a dedicated HSEQ department

Sahreej milestones and set the objectives of the future,” Al-Shali says. Sahreej has set and achieved the objective of reconstructing all its three depots (at Jubail, Dammam and Jeddah) to meet higher safety standards, with particular attention to working at height, confined space entry and

HCB MONTHLY | OCTOBER 2021

MOVE WITH THE TIMES Issues facing compliance and efficiency are not the same year on year. That’s why Sahreej conducts annual management review meetings, attended by senior management, supervisors and other key staff, to address evolving issues. “These meetings illustrate

staff working conditions, while also increasing tank container volumes and the scope of services it provides. Meanwhile, Sahreej’s monitoring and measurement programme, as well as its preventive maintenance plan, work side by side to reduce downtime and increase throughput levels. “Surely, we can’t talk compliance without talking safety where risk assessment is a core principle,” Al-Shali stresses. Sahreej subjects every safety data sheet (SDS) to a risk assessment before acceptance and maintains a master data register that that includes acceptance procedures and safety equipment along with pre-selected cleaning techniques. This database acts as the starting point before a tank is accepted on site. Having the data readily available to all employees minimises the waiting time during tank gate-in operations and ensures compliance with dangerous goods regulations. “Risk assessment goes beyond SDSs,” Al-Shali says. “Sahreej has well documented and risk-assessed operational procedures for all services and activities.” GIVE THEM THE CONFIDENCE Sahreej’s Business Continuity Plan provides a fine example of how it can adapt to the uncertainty of the world, keeping the doors open for customers while placing employee

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health and safety first. Without going into details, this plan was activated during the Covid-19 pandemic and both employees’ and customers’ satisfaction rate showed that it was a success. As the industry keeps evolving with new guidelines, requirements and many complex best practices in health and safety, the team at Sahreej has to adapt and learn. This is where general manager Mike Tunstall offers the resources and support to bring Sahreej HSEQ training programmes to life. “This programme is not about lecturing our team, but far more than that: it gives knowledge, confidence, and empowerment,” Tunstall explains. “We focus on analysing the training outcomes and how they reflect within the organisation. Our analysis of the programme data indicates where to focus more and where to enhance the training strategies. This is accomplished by actively monitoring vital HSEQ KPIs.” Those key performance indicators include the behaviour-based safety programme, where employees’ behavioural data from incidents, near-miss reports and non-conformity reports are analysed to minimise those behaviours that have the potential to cause incidents. As part of the behavioural change process, Sahreej conducts one-to-one training sessions to address individual employees’ safety concerns. How does a ‘positive safety culture’ remain positive? One area is to focus on the HSE awareness of new employees through an induction programme where safety rules, the code of business conduct and anti-trust compliance are communicated. “Sahreej also encourages active participation and comments/ suggestions from all levels,” Tunstall adds. A smaller version of this programme is also provided to visitors to the facility. Sahreej is also a member of the International Tank Container Organisation (ITCO) and incorporates ITCO guidelines into the weekly toolbox training programme to keep staff up to

No safety training programme is complete without practical sessions and Sahreej conducts periodic pop-up drills covering such areas of concern as medical emergencies, fire evacuation procedures and confined space entry. This latter item is a major area of concern and Sahreej shares its ‘Man Down’ training day online – it can be viewed at www. youtube.com/watch?v=t6vVZVp-Quw. CLEAN AND CAREFUL The competence of trainers is vital for the success of the training programme and Sahreej has implemented its own certification process, designed to verify the skills of its trainers to deliver information and assess the understanding of participants. The train-thetrainer programme expands on the basics by including factors such as the handling of hazardous materials, awareness of relevant ISO standards, welding certification, risk assessment techniques and many others. As a joint venture between Stolt Tank Containers and YBA Kanoo, Sahreej has been able to reach out to the leading HSEQ monitoring and tracking software, Intelex, where training requirements are assigned to each individual staff member based on their duties, with targeted Intelex topics planned each month specific to their functions. Rigorous compliance with complex regulatory requirements is a core value in ensuring safety of people and the

environment. Sahreej recognises the environmental impact of waste production and took it upon itself to reduce water consumption by recycling washwater and monitoring water quality through advanced analysis. A waste management programme is in place with the sole purpose of defining the responsibilities for managing hazardous and non-hazardous waste items or products including their collection, transfer, storage, handling and disposal arrangements. “Controlling the waste is not enough,” Al-Shali notes. “Sahreej has gone further by installing groundwater wells to monitor for any groundwater contamination of the facility surroundings. In addition, regular tests are carried out to monitor noise pollution and boiler exhaust fumes.” In an attempt to reduce its carbon footprint, Sahreej has eliminated the use of single-use plastic bottles and other plastics and most of its forms are digitised, resulting in a reduction in plastic and paper waste. “The success of Sahreej relies on a combination of employees’ effort, talents and management commitment to the team wellbeing. Our employees are our most valuable asset, and we genuinely encourage the innovative and distinctive ideas that come with staff contribution,” Al-Shali concludes. “Most importantly, we do things well and we enjoy what we do.” www.sahreej.com

date with industry best practice.

 CONFINED SPACE ENTRY IS AN AREA WHERE SAHREEJ COMMITS A LOT OF TIME AND RESOURCES TO ENSURE THE SAFETY OF ITS PERSONNEL, THROUGH TRAINING AND PROCEDURES

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COLD TRACK LNG • THE IDEA OF MOVING LARGE VOLUMES OF LNG ACROSS EUROPE BY RAIL HAS BEEN SUCCESSFULLY TESTED, WITH ENDTO-END EMISSIONS BENEFITS VTG has successfully completed tests on the transport of cryogenic LNG by rail, on behalf of Uniper subsidiary Liqvis and with the technical support of Chart Ferox. LNG was loaded in Brunsbüttel and carried by rail to a Uniper power plant 800 km away in Ingolstadt. Liqvis sponsored the project to investigate the viability of moving LNG over long routes to distribution centres. “The ability to move larger volumes in a single batch by rail reduces transport emissions while taking heavy traffic off the roads,” VTG says. VTG has been carrying liquefied natural gas for many years. Now, as the first and – to date – only company in the rail freight sector, it has collaborated with Chart Ferox to develop an innovative tank wagon that can bypass

shipping routes, road haulage and the pipeline network to transport LNG across Europe. The newly designed wagons have a thermally insulated tank to keep the gas at a constant temperature during filling and transport. “VTG already has the expertise and the logistical concepts that are needed to move LNG around Europe’s rail networks quickly, reliably and in a way that is kind to the environment,” says Heinz Jürgen Hiller, business development LNG Europe at VTG.

 USE OF LNG AS AN ALTERNATIVE TO OIL ALREADY MAKES A CONTRIBUTION TO CLIMATE CHANGE EFFORTS; MOVING IT BY RAIL ADDS EVEN MORE

“As a kind of ‘pipeline to go’, our LNG tank wagons can permanently supply liquefied natural gas to whole industries with a voracious appetite for energy. We are really pleased about this partnership, which plugs a gap in rail freight.” A ROLE FOR ALL “For both our customers and ourselves, the safe and seamless supply of LNG to our existing and planned filling stations is of crucial importance,” adds Sebastian Gröblinghoff, managing director of Liqvis GmbH. “But besides wanting to deliver a product with a very low carbon content at our filling stations, we are also striving to actively reduce CO2 emissions throughout the upstream value chain. Having VTG by our side gives us a potent partner that shares our vision of a sustainable future. Within the framework of this test project, VTG is joining us in exploring potential to optimise the delivery of LNG to our network of filling stations.” Brunsbüttel Ports GmbH, whose port facility stands at the mouth of the Elbe River, was chosen as the venue for loading. The same site had already handled the first-time filling of VTG’s specially developed tank wagon with LNG back in April 2016. “In recent years, a strategically favourable location at the point where the Elbe flows into the Kiel Canal has combined with close proximity to the port of Hamburg and direct access to the Baltic and Scandinavian markets to establish the Elbe port in Brunsbüttel as one of the leading LNG terminals on Germany’s North Sea coast,” says Frank Schnabel, managing birector of Brunsbüttel Ports and the Schramm Group. Both truck-to-ship and ship-to-ship LNG bunkering are business as usual in Brunsbüttel, and plans for an LNG import and distribution terminal are proceeding apace. LNG could then be redistributed from Brunsbüttel by rail (in cooperation with VTG), by LNG bunker vessel or via the pipeline network. www.vtg.com

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TALKING WITH TALKE EXPANSION • ALFRED TALKE IS CONTINUING WITH ITS GLOBAL EXPANSION PLANS, STARTING WORK NEXT YEAR ON A NEW LOGISTICS CENTRE IN SOUTH-EAST ASIA

HCB: Mr Grunert, what path will take you to south-east Asia?

polymers and non-dangerous chemicals. In the first half of 2022, we will start construction of the dangerous goods warehouse, which will commence operations in the second quarter of 2023. Construction of the second warehouse will follow in 2024. We will store and handle dangerous goods of classes 2, 3, 4,

HCB: What do you bring to the table that existing players in Malaysia do not? CG: Talke has an excellent track record globally in transporting and handling chemicals with a very wide range of services – a key success factor that sets us apart from local and international logistics companies. We are agile to adapt to changing market and customer requirements and can offer services which are not yet available sufficiently in Westports or Port Klang. We have proven this, for example, in Dubai, where we operate one of the most modern warehouses for chemical substances. Our business success is based on our relationships with the largest companies in the chemical and petrochemical industries, for whom we have successfully provided services for nearly 75 years. In addition, we are one of only few providers able to offer an integrated logistics concept from a single source – starting with the planning, construction and operation of logistics facilities, through value-added services, handling and warehousing, to transport services.

OVER ITS 75-YEAR history, Alfred Talke has evolved from being a transport company focused on chemicals into a full-service supply chain partner for the chemical and petrochemical industries. Today, the company offers planning, construction and operation of logistics facilities, value-added services, and transport services from a single source. After expanding within Europe, Talke developed its business in the Middle East from 2003 and entered the US market in 2016. It is now taking things further with plans to expand in south-east Asia over the coming year. HCB spoke to Chistoph Grunert, managing director of the Talke Group, about the plan.

CG: We will enter the south-east Asian market with an integrated dangerous goods and (petro-)chemical warehouse inside Westports, Port Klang, Malaysia. The Asia-Pacific region continues to record high GDP growth rates in the chemical industry, and we expect consumption of chemicals and polymers to increase. In addition, we see a high demand for modern and scalable logistics infrastructure. We will build a 17,500-m² dangerous goods warehouse and an 18,000-m² warehouse for

dangerous and dangerous substances, in addition with various value-added services. This offers tremendous benefits to our customers’ supply chain.

5, 6, 8, 9 as well as non-dangerous chemical materials including polyolefins.

HCB: What are your long-term plans for the region?

CG: Westports offers many opportunities for our company due to its geographical location.

CG: We have the desire to establish a long-term strategic relationship with both local and international clients, partners and authorities and see a good strategic basis. There is great potential to develop an integrated facility for polymers and

It is strategically located along the Malacca Strait, which makes it an excellent gateway for the entire Asia-Pacific region. We closely examined the supply chains of our global customers and see the need to create a hub for south-east Asia. In addition to storing polymers, we can also store other non-

chemicals and we are truly convinced the region as well as our facilities can become of strategic importance to many chemical and petrochemical customers in the coming years. We want to further develop the entire site and have committed to substantial investments. www.talke.com

HCB: Why did you choose Malaysia as the entry point?

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are occurring at our Italian terminals, among others, where work has been in crisis mode for weeks.”

HUPAC MOVED 568,622 road consignments onto rail transport in the first half of this year, a 14.5 per cent increase over the same period last year. Growth was seen across all market segments, with the single exception of maritime freight as a result of the Suez Canal closure, the ongoing congestion at terminals around the world, and problems in hinterland traffic. “We have closed the coronavirus gap and exceed 2019 volumes by almost 10 per cent”, says Michail Stahlhut, CEO of the Hupac Group.

terminals and on rail routes, which has impacted reliability and the quality of rail traffic. To counter this, Hupac is planning a series of measures relating to the organisation and availability of assets in order to strengthen the system and ensure the required level of quality. “The current intensive construction activity on the Rhine-Alpine corridor, with full or partial closures lasting days and weeks, shows once again how important it is for all partners involved to act in a coordinated

PLANNING FOR GROWTH “Construction sites must not become a modal shift stopper,” warns Hans-Jörg Bertschi, chairman of the Hupac board. Hupac is calling for a round table on stable international bypass routes, because construction works on the Rhine-Alpine corridor will continue in the coming years. All infrastructure operators of the corridor should sit at the table, including France as an important partner for the upgrading and electrification of the Wörth-LauterbourgStrasbourg alternative route on the left bank of the Rhine. “We are convinced that a constant, targeted exchange between the infrastructure managers and the rail freight customers is the key factor in ensuring that construction and driving on Europe’s largest supply artery can continue in the future,” says Bertschi. More volume in combined transport also requires more capacity. After the pandemicrelated reduction in investment, Hupac has increased its spending again. In the terminal sector, planning and construction is progressing at the Piacenza, Milano Smistamento and Novara sites in Italy and Brwinów in Poland. In September Hupac started agency activities at the Brescia/ Montirone terminal with its own staff, thus opening up new potential for the economic area east of Milan. In August Hupac took a small stake in the WienCont container terminal in Austria, which it sees as an important step in expanding network on the rail axis between the Benelux/northern Germany region and south-east Europe. “Terminals are door

But that growth has generated capacity problems within Europe, particularly at

manner,” Hupac says. “Simultaneous construction on several sections of the line with insufficient diversion options reduces the capacity considerably. The consequences are train cancellations, delays, terminal congestions, the explosion of production costs and shifts back to the roads. Serious effects

openers for more modal shift and support the green spirit,” says Stahlhut. “This participation is an important step in the expansion of our intermodal network to bring more traffic onto rail in the future and to strengthen intermodal transport.” www.hupac.ch

BACK ON TRACK RAIL • MOVING FREIGHT OFF THE ROADS IS A LONG-STANDING PILLAR OF EUROPE’S EMISSIONS REDUCTION PROGRAMME. HUPAC REPORTS IT HAS BEEN PLAYING ITS PART THIS YEAR

 HUPAC IS INVESTING AGAIN TO ENSURE THERE IS ENOUGH CAPACITY IN THE RAIL NETWORK

HCB MONTHLY | OCTOBER 2021

NEWS BULLETIN

TANKS & LOGISTICS

TALKE TESTS BLOCKCHAIN

Alfred Talke has begun testing of a blockchain-based solution to handle tank cleaning certificates, developed in collaboration with the Fraunhofer Institute for Applied Information Technology (FIT). The digital solution avoids the risk of forgery and inaccuracy by using machine-readable digital documents that are registered in the blockchain, making them forgery-proof. Inspectors can access the digital cleaning certificate on a smartphone by using a QR code (right). “We are at the beginning of a solution in which we not only digitise cleaning certificates. The blockchain technology also ensures that the certificates are forgery-proof and traceable across companies. This improves security-relevant processes in our industry,” says Armin F Talke, member of Alfred Talke’s advisory board. www.talke.com DHL’S FREIGHT IN FRANKFURT

DHL Supply Chain is enlarging its Life Sciences and Healthcare campus in Florstadt, 35 km north of Frankfurt-am-Main, Germany, with a new 32,000-m2 building due to open before the end of this year. The new building will take capacity of the multi-user pharmaceutical and medical products facility to more than 70,000 m2. It will offer additional

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temperature-controlled warehouse space with three temperature zones, as well as a separate 1,750-m2 area for the storage of hazardous materials. “One of our most important objectives is to continuously expand our business in step with the pharmaceutical industry,” says Rainer Haag, managing director of DHL Supply Chain Germany & Alps. “Especially in those markets that are important for us, such as Germany and Europe, our goal is to continue to grow and to help companies outsource and optimise activities outside their core business, such as logistics.”

In addition to the work at Florstadt, DHL Freight is also building a new cross-dock terminal, office space and a 10,500-m2 warehouse for specialty chemicals at Erlensee, 25 km from Frankfurt, on a former military airbase. Due to open mid-2022, the site (left) will replace DHL Freight’s Maintal site, with staff from there and Euronet relocating to Erlensee, which will have space for around 300 employees. “Demand for road transport and customised logistics continues to grow. We’re continuously expanding our network to ensure we can meet customers’ existing and future demands for excellence,” says Thomas Vogel, CEO of DHL Freight DACH. “Capacities at our previous site in Maintal no longer suffice. That’s why we’re delighted not only to be able to expand our storage and transhipment areas at the new site, but to do so by opening a modern, sustainable logistics centre.” The warehouse for specialty chemical will comply with prevailing provisions under Germany’s Federal Immission Control Act (BImSchG) and Ordinance on Installations Requiring a Permit (4. BImSchV) and will also meet the strictest of safety standards. www.dhl.com

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MILKYWAY ADDS STOLT DEPOT

Milkyway Chemical Supply Chain Service has agreed to acquire Shanghai Stolt-Nielsen Tank Container Service, which operates a tank container depot in Shanghai. The deal expands Milkyway’s capacity to handle tank containers in eastern China and it notes that the Stolt-Nielsen facility is the only tank depot in China with an independent foodgrade cleaning bay and pipeline. Milkyway currently handles some 2,000 tanks per month at its three existing depots in Shanghai, Zhangjiagang and Yingkou and says it will continue to invest in new cleaning and storage capacity in port cities and chemical parks, with the aim of owning 10 such facilities by 2023. As part of the transaction, Milkyway has signed a long-term service agreement for the cleaning, maintenance and heating of tank containers in China with Stolt-Nielsen. Milkyway has also signed a strategic cooperation framework agreement with Vanke Logistics Development, under which the two companies will work together to invest in logistics infrastructure, supply chain services and other fields, and jointly promote the business layout in strategic cooperation cities. “Milkyway will continue to operate and expand the original high standard logistics business network and expand the long-term cooperative relationship between domestic and foreign chemical enterprises,” the company

states. “In the future, the two sides will continue to cooperate with each other, complement each other’s advantages, adhere to the customercentred core values, and constantly create benefits for the society and enterprises. www.mwclg.com BULK TAINER IN BENELUX

Bulk Tainer Logistics has established a new entity in Belgium, Bulk Tainer Logistics Benelux BV. Headquartered in Antwerp, the office is headed by Peter de Boever. “We felt it was time to have our feet firmly on the ground in this key region of our industry sector,” the company states. bulktainerlogistics.com HOYER EXTENDS BITUMEN DEAL

Hoyer has won a five-year extension to its bitumen logistics contract with Puma Energy in the UK. The award reflects Hoyer’s special efforts in this specialised field, the company states, where it has complete logistics management teams that undertake loading and unloading at customer sites, the associated capacity utilisation planning and driving personnel scheduling, and optimising fleet utilisation. Garry Brennan, UK bitumen contracts manager for Hoyer, explains: “Hoyer places great value on a very high standard of safety, and invests correspondingly in further education and training. Our drivers receive comprehensive initial training which focuses on all aspects of

loading and delivering bitumen and includes extensive theory training regarding product knowledge and emergency response behaviours.” www.hoyer-group.com ESSERS ON THE MOVE

H Essers has formally opened its new headquarters building at its existing site at Genk Noord in the Belgian province of Limburg. Designed to cope with continued growth in business, the main office offers 4,000 m2 of space over six floors and has room for 135 employees. “However, we can easily expand that to 185 without the need for further construction,” says Salvatore Napolitano, chief procurement officer. As might be expected, sustainability is built into the new facility, with green roofs, passive cooling and the use of renewable energy from Essers’ own wind farm and solar panels. “Each choice made during the realisation of this beautiful project reflects the traits that typify H Essers: dynamism, ambition, and the ceaseless pursuit of efficiency, sustainability and quality,” says Elizabet Iglesias of architect ILB. www.essers.com DP GOES FOR HILLEBRAND

Deutsche Post DHL Group has agreed to acquire JF Hillebrand, a leading provider of transport and logistics services for the beverage and non-hazardous liquids sectors, for some €1.5bn. “With the growing maturity of our freight forwarding business, this bolt-on acquisition of Hillebrand is highly complementary to our existing portfolio,” says Frank Appel, CEO of Deutsche Post DHL. “In line with our group strategy, we strengthen our core logistics business and deliver profitable long-term growth. Using our financial strength, we are able to pursue quality investments while reinforcing our unchanged commitment to deliver on investor return expectations.” Subject to various regulatory approvals, following the acquisition Hillebrand will be part of DHL’s Global Forwarding, Freight division. DHL says it will benefit from Hillebrand’s know-how and customer experience in bulk liquids and other adjacent special care commodities, to leverage the positive underlying growth pattern of these products. www.hillebrand.com

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we wish them every success in the future. We would like to thank our customers for their trust over the past years as well as thank our teams for their excellent performance in delivering safe and reliable services.” 3i Infrastructure will remain a shareholder in Oiltanking Singapore.

OVER TO YOU SALE • OILTANKING HAS SETTLED THE PLANNED DIVESTMENT OF FOUR EUROPEAN TERMINALS WITH EVOS DUE TO TAKE THEM OVER BY THE END OF THE YEAR OILTANKING AND EVOS HAVE agreed a deal under which Evos will acquire four bulk liquids storage terminals in Europe from Oiltanking. The transaction involves OIltanking’s terminals in Amsterdam, Ghent, Malta and Terneuzen, which together offer some 3.8m m³ of liquids storage capacity and a range of services. Under the terms of the transaction, which is expected to close before the end of this year, Evos Finance BV will acquire Oiltanking’s 55 per cent stake in each of the terminals, along with the 45 per cent held by 3i Infrastructure plc. “The divestment of our four European terminals is in line with Oiltanking’s strategy 2025 as we shift our portfolio and focus on gas, chemicals and new energy,” says Matti Lievonen, CEO of Oiltanking. “Together with our partner 3i Infrastructure we have invested into the expansion and upgrading of our

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terminals and improved their environmental and safety performance. Driven by our commitment to apply a best-owner mindset we are confident the terminals are well placed to provide a perfect match with Evos’ asset portfolio.” “We are proud of the skilled and committed teams at the terminals and the achievements we have made together with our partner 3i Infrastructure over the years,” adds Douglas van der Wiel, senior vice-president, EMEA and Oiltanking. “We are confident that Evos will continue to advance the terminals and

 EVOS IS TO DOUBLE ITS NETWORK OF EUROPEAN BULK LIQUIDS STORAGE TERMINALS, TAKING ADVANTAGE OF THE REPOSITIONING OF OTHER OPERATORS IN THE SECTOR

BUYING A BRAND From the buyer’s side, the deal is in line with Evos’ vision and the long-term infrastructure investment philosophy of its financial backer, First Sentier Investors, to create a leading tank storage platform with a presence in key European liquid bulk hubs. “We are delighted to have reached an agreement on the acquisition of the terminals in Amsterdam, Terneuzen, Ghent and Malta,” says Marcus Ayre, head of infrastructure investments Europe at First Sentier. “This diversified portfolio of world-class liquid bulk storage terminals provides an excellent fit with First Sentier’s existing platform, Evos, and with our long-term infrastructure investment philosophy. We look forward to working with the incumbent management team and employees to continue to develop and grow the combined business.” Koert Schouten, CFO of Evos, adds: “We welcome the terminals in Amsterdam, Terneuzen, Ghent and Malta to our platform. Evos will now have a total capacity of 6.2m m³ across its eight terminals for the storage of oil products, chemicals and renewable fuels. We will continue our drive for safety and service excellence. Our increased scale will enable us to provide an even better service offering to our customers and will facilitate the pursuit of energy transition opportunities, together with our customers, in line with our ambition to be a frontrunner in new sustainable energy products.” The four existing terminals in the Evos portfolio are located in Amsterdam, Rotterdam, Hamburg and Algeciras, all acquired since the company was established in 2019. evos.eu www.oiltanking.com

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STEP ASHORE TANK CLEANING • A NEW SOLUTION IS COMING FOR THE ONSHORE OIL AND GAS SECTOR AS DANISH ROBOTICS EXPERT CLIIN BRINGS ITS PROVEN TECHNOLOGY FOR CLEANING TANKS CLIIN ROBOTICS HAS for two years enjoyed good relationships with a number of major bulk carrier operators, who have found its Cargo Hold Robot (CHR) the perfect solution for reducing cargo hold cleaning times, reducing the volume of cleaning chemicals entering the environment and doing the job to the highest standards required. That solution is now moving onshore, with the launch this month of CLIIN’s “wet side” offering for storage tanks in the oil and gas industry. Thomas Jørgensen, CLIIN’s founder and CEO, says he sees “oceans of opportunity” in the move, which has been supported by good feedback from the sector in Denmark, CLIIN’s home market. The robotic tank cleaning solution provides a thorough clean with a quick turnaround and no need for personnel to enter the tank to perform the cleaning. CLIIN’s robotic tank cleaning system uses no chemicals, only hot water under pressure; that leads to fewer problems in disposing of wash water, whether the operation is carried out on land or, as has been the case so far, in the water. Jørgensen is keen to stress that environmental benefit, although he has found so far that the initial interest from users stems from the cost savings that can be made and the return the investment in the system provides. SAVINGS ABOUND The heart of the CLIIN system is the robot, developed by the company following Jørgensen’s experience with International Paint and Akzo Nobel. The company was founded in 2016 with the first prototype arriving in 2018; collaboration with Danish bulk carrier operator J Lauritzen helped commercialise the CHR concept in 2019, since when it has been eagerly adopted by other bulker shipping

HCB MONTHLY | OCTOBER 2021

companies, including Oldendorff Carriers, Norden and Ultrabulk. The robot is in fact designed in such a way that it can be easily repurposed: the robot itself is in effect a tractor platform that can carry other tools, such as cameras, testing equipment or even welding equipment. But its tank cleaning application is the primary idea and in bulk carrier work it does the job in half the time and with only 40 to 70 tonnes of cleaning water, compared to 200 tonnes or more with conventional equipment. In

 THE CLIIN ROBOT CAN ACCESS PARTS OF THE HOLD THAT FIXED WASHERS STRUGGLE TO REACH

addition, it can access the difficult areas of a cargo hold that are missed with fixed cleaning equipment, and most importantly it uses only fresh water under high pressure, with heating if needed, meaning the resulting sludge is chemical-free. The company’s aim now is to take those advantages to shoreside applications and it is already working on a trial in Denmark on tanks that have been used for the storage of heavy fuel oil. Jørgensen says it is a “very early phase” for the company but he expects this is where much of the focus will be in its work in the coming years. Further off, perhaps, would be applications in tankers, for which the units will have to be ATEX-certified. However, if CLIIN can pull this one off there would be massive savings for tanker operators, who would not have to gas-free their cargo tanks before the operation. In the meantime, CLIIN is continuing to roll out its system around the world, having over the past year struck partnerships in Turkey and Japan and with plans to enter the US market. cliin.dk

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AS THE BIGGEST integrated chemical cluster in Europe, the Port of Antwerp is well positioned to play a role in fostering the decarbonisation of the industry and its logistics network and the creation of a circular economy, by bringing together a range of players across the supply chain and from outside its immediate reach. One example of this is an apparently innocuous product that is required across the chemical industry: steam. Indaver, which operates a waste-to-energy plant in Waasland on the left bank of the River Scheldt, produces

pipeline network, Ecluse, in collaboration with other interests and the support of the Flemish government, to supply that steam to nearby industrial users, including Ineos Phenol, ADPO, Ashland, Monument Chemical and Lanxess. Ecluse supplies high-pressure, hightemperature steam that users can tap into. The steam is described by Indaver as “50 per cent green”, meaning that consumers switching over from their own gas-fuelled boilers are achieving a significant reduction in both energy consumption and CO2 emissions. “Ecluse is a project on a global scale, only

NURSEMAID TO THE FUTURE Another example is provided by Ineos Oxide, a major player in the production of ethylene oxide and its derivatives. The Port of Antwerp says this process is an attractive host for synergic co-siting, offering a range of products, services and utilities for other companies to use. The Beco2 project, a joint venture between industrial gas suppliers Messer and IJsfabriek Strombeek, has been recovering CO2 from the Ineos Oxide plant since 2008, producing up to 150,000 tonnes of recovered CO2 per year. This CO2 is stored in tanks and distributed to consumers, especially in the food industry, across the Benelux countries. The final part of the jigsaw came with the arrival of Van Moer Logistics in the Antwerp chemical clusters. Ineos convinced Van Moer to focus on petrochemicals and Van Moer adapted its infrastructure and trained its staff to act as process operators. Now, ahead of delivery of product, Van Moer can heat containers so that product can be transferred in liquid form into Ineos’ process tanks. Thanks to this synergistics collaboration, Inoes Oxide greatly reduces its CO2 emissions and the generation of waste products, Beco2 has a continuous inflow of circular raw material, and Van Moer achieves greater efficiencies in its operations. More importantly, the Port of Antwerp says, the partnership represents an important step on the road towards a climate-neutral petrochemical industry. The Port of Antwerp is again one of the sponsors of the EPCA Annual Meeting and will have a ‘virtual booth’ at the online event where it will have more information on these and other projects as it seeks to help industry navigate the energy transition. A significant element of that is the new NextGen District, housed on the former Opel car plant, which will foster start-ups with ideas for circular and sustainable projects. “In a rapidly changing world, we want to

a lot of steam and in 2019 established a

possible thanks to the contribution of all the partners and the support of the Flemish government,” says Paul de Bryucker, CEO of Indaver. “Moreover, this project is proof that ‘Circular Flanders’ is not a far-off dream and that we can achieve great things if we combine forces.”

be a safe home port and a lever for anyone who sees opportunities and wants to take on challenges,” says Jacques Vandermeiren, CEO of the Port of Antwerp, who will be speaking during the third day of the EPCA Annual Meeting. www.portofantwerp.com

CHEMISTRY LESSONS ANTWERP • PORT AUTHORITIES HAVE THE POTENTIAL TO PLAY AN IMPORTANT ROLE IN THE DECARBONISATION OF THE CHEMICAL INDUSTRY. ANTWERP HAS PLENTY TO TEACH US

 THE PORT OF ANTWERP IS IN A POSITION TO FOSTER COLLABORATION BETWEEN PLAYERS ALONG THE SUPPLY CHAIN TO INCREASE SUSTAINABILITY AND CREATE A CIRCULAR CHEMICAL INDUSTRY

HCB MONTHLY | OCTOBER 2021

NEWS BULLETIN

STORAGE TERMINALS

ALKION CLOSES SOTRASOL

Alkion has formally ceased operations at the former Sotrasol terminal in Le Havre, France, after already having installed new tankage at its nearby Le Havre terminal. The move was made necessary by a decision made by the local port authority in 2015 to free up space for a number of major projects to help handle the region’s coming energy transition. The tanker Stolt Spray discharged the last cargo at the terminal in June and planning is currently ongoing for the responsible decommissioning and remediation of the site so it can be handed over to the port authority in February 2023. www.alkion.com STOLTHAVEN TO BUILD IN TAIWAN

Stolthaven Terminals has signed a letter of intent with Revivegen Environmental Technology to study the possibility of jointly developing a greenfield terminal in the port of Kaohsiung, Taiwan, where Revivegen has recently taken a lease on land. Stolthaven says it has seen growing customer demand for high-quality bulk liquids storage in the region. “The terminal will focus on the safe and efficient handling and storage of chemicals and industrial gases for local and multinational companies, including those with manufacturing operations in Taiwan,” says Guy Bessant, president of Stolthaven Terminals. “A terminal in Taiwan would be complimentary to our existing global network and increase the reach of the supply chain solutions that we are able to offer our customers.” A final investment decision is expected before the end of this year. www.stolt-nielsen.com MODA TO SELL INGLESIDE

Moda Midstrean and its financial sponsor EnCap Flatrock Midstream have agreed to sell the Moda Ingleside Energy Center (MIEC) and other assets to Enbridge for some $3bn.

HCB MONTHLY | OCTOBER 2021

MIEC is the largest crude oil export terminal in the US, handling more than 25 per cent of all US Gulf Coast crude exports in 2020 and providing a critical link between the Permian and Eagle Ford producing areas and international markets. The transaction includes the nearby Taft terminal, two pipelines linked to MIEC and the brownfield St James development, which is planning to build independent third-party logistics solutions for customers in the St James, LA area. The Vopak Moda Houston joint venture is excluded from the deal. “MIEC is a flagship asset,” says Moda Midstream president, CEO and founder Bo McCall. “We are very proud of the safe and responsible growth we have achieved since we purchased the asset less than three years ago. The site was originally designed by the US Navy to support a carrier battle group and, despite the uncertainty following its closure, has developed into the nation’s largest exporter of crude oil, creating jobs and economic prosperity for the Coastal Bend. We are all excited to watch and support MIEC’s continued development and operational

excellence under the ownership of a world-class company like Enbridge.” www.modamdstream.com KM, NESTE GO FOR BIO HUB

Kinder Morgan and Neste have agreed to partner in the creation of a US logistics hub, based on Kinder Morgan’s Harvey terminal in Louisiana, for the collection and distribution of feedstocks and renewable fuels, including biodiesel, sustainable aviation fuel (SAF) and renewable feedstocks for polymers and chemicals. Kinder Morgan will modify existing tanks and pipework at the Harvey facility to allow segregated storage in 30 tanks, install a new boiler for heating products, and invest in rail car and other logistics elements. “This clearly shows the positive role America’s existing energy infrastructure can play in creating a sustainable future and fighting climate change,” says Jeremy Baines, president of Neste US. “Neste and Kinder Morgan are transforming existing terminal assets into what can be considered green infrastructure, which will ultimately enable more American businesses and cities to power their fleets and supply chains with renewable fuels and other products.” The project is supported by long-term commitment from Neste and is expected to start operations early in 2023. kindermorgan.com LBC OVER THE RAINBOW

LBC Tank Terminals has put the new tanks of its ‘Rainbow phase 2’ expansion project at its Botlek site in Rotterdam into service, receiving its first cargo by sea (pictured opposite). “This is once again a great milestone and accomplishment of everybody involved,” the company says. “With our state-of-the-art infrastructure, we are very excited to serve our existing and new customers with safe and reliable storage and handling services in the heart of the Botlek area in Rotterdam.” www.lbctt.com

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EUROTANK ADDS BIO TANKS

Eurotank Amsterdam, part of VTTI, is to convert its gasoil tanks to store biofuels and hydrotreated vegetable oil (HVO). The work follows on from a successful pilot project and will realise 75,000 m3 of biofuels capacity at the 1.2m-m3 site, with the first phase due onstream by the end of this year. “It is an important step for ETA, in its ambition to provide storage for renewable energy and play an important role in the energy transition of the Port of Amsterdam,” the company states. It also plans to upgrade infrastructure, including jetties and loading arms, as well as a new truck loading station. “These investments will create an important sustainable logistics hub, because of the terminal’s strategic location. The Port of Amsterdam is well connected by ships, trucks and trains to Europe and the rest of the world,” Eurotank adds. www.vtti.com KOOLE CLEANS UP

Koole Terminals has completed the Food Safety System Certification (FSSC) 22000

programme at its terminals in Nijmegen, Pernis, Amsterdam and Zaamdam. “By achieving this certificate, Koole proves that they meet the highest standards in the area of food safety and set great value on continuous improvement,” says Dominique Timp, lead auditor for DNV. Klaas Verbugt, HSEQ manager at Koole Terminals, adds: “The food safety system represents an all-round methodology for hazard analysis and risk management based on HACCP principles, therefore continuously improving the effectiveness and efficiency of food safety. With this extensive and global standard, our national and international renowned customers have guaranteed assurance of an excellent, integrated and reliable food safety system.” Koole Terminals also says the new truck loading rack at its Pernis terminal in Rotterdam is “as good as completed” and the commissioning phase has begun. The new rack has ten loading bays, of which seven are now fully equipped; the other three lanes can be equipped with skids in the event of future growth. All bays are completely automated, providing drivers

with a safe space in which to work quickly and efficiently. “With the new loading rack, we ensure the innovative loading of fuels for our customers,” says Roel Kremer, project manager at Koole Terminals. “When the drivers arrive using an access pass, the selection for the correct loading starts automatically. The licence plate number is projected onto a screen above the loading bays. This way, they know exactly to which loading bay they must load the preselected fuel and additive mix. Furthermore, we have built an advanced, state-of-the art additive system. This results in extremely accurate automated dosing. “Koole has also been working on safety, and it is at all times of paramount importance to us,” Kremer adds. “The loading rack has sensors and a brand-new automated fire extinguishing foam and sprinkler system. We comply with all relevant legislation and regulations, including PED, PGS 29, and PGS 31. Koole is also ready for future growth, as there is room for three fully equipped loading lines, including additives.” koole.com

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STEAMING SLOWER VLGC SHIPPING • LAST YEAR’S HEADY MARKET FOR LARGE LPG TANKERS HAS EVAPORATED AS PRICES HAVE TIGHTENED. THERE MAY BE WORSE TO COME FOR OPERATORS VERY LARGE GAS carriers (VLGCs) depend for their market on long-haul trade in LPG; in today’s market that mainly means exports from the US Gulf and the Middle East to Asia. The first half of this year has seen several factors lining up to reduce volumes on these trades, which has been reflected in the half-year financial figures released lately by the major VLGC operators. Firstly, the cold weather experienced in North America in February and March raised

crude market meant that there was less associated gas being produced, again reducing exports from the Middle East. VLGC operators remain comfortable, reasoning that US pricing will not persist and that the demand side is strong. More propane dehydrogenation (PDH) plants are opening in China this year, which will pull in more LPG, and the consumption of LPG for domestic and commercial use in India continues to grow. The main worry will be the number of VLGCs

domestic consumption and prices, reducing inventory and leaving less material available for export. Higher prices in the US also meant that the arbitrage for exports to Asia was squeezed, leaving less margin available for freight. Secondly, pressure on the Opec+ nations to control oil output to manage the

on order that will join the fleet over the next few years: will there be enough product around to provide employment for all these new vessels? The result of trading conditions in the first half of this year is amply illustrated in the results posted by BW LPG, the largest

HCB MONTHLY | OCTOBER 2021

operator in the VLGC market. Timecharter equivalent income fell from $311m in the first half of 2020 to $244m, a 21.5 per cent decline; EBITDA dropped by 30 per cent to $167m and after-tax profit fell from $143m to $94m. Avance Gas fared somewhat better, with timecharter equivalent earnings virtually flat year-on-year, though net profit dropped by 6.5 per cent to $20.4m. Dorian LPG, which operates its VLGCs in the Helios LPG Pool, reported adjusted EBITDA of $29.8m for the three months to end June – the first quarter of its 2022 financial year – compared to $41.1m for the same period a year earlier, with net income dropping by more than half to $5.9m. SHORT-TERM OUTLOOK The major operators report some normalisation in the market entering the third quarter, with better LPG pricing offering more arbitrage opportunities and some improvement in Middle East exports from August following easing of the Opec+ oil production restrictions. In addition, ongoing congestion in the Panama Canal, with extended waiting times as VLGCs are now barred from pre-booking passage, is effectively reducing carrying capacity, creating some tightness in the VLGC market.

TANKER SHIPPING 65

BW LPG is most concerned about the US LPG supply position. Inventories are still at the bottom end of the five-year trailing average, which could easily support increased domestic prices, putting pressure on arbitrage trades and export volumes. On the other hand, Dorian LPG is more bullish, noting that, while inventories are low, processing capacity in the US continues to rise. Some 1.0m b/d of incremental fractionation capacity was brought online in 2020 and another 0.6m b/d is due to be added this year, taking total fractionation capacity to 8.6m b/d by the end of the year, compared to 6.8m b/d at the end of 2019. And, although inventories remain at the low end of the five-year trailing average, US production is at the high end, 4 per cent up on the first half of 2020 despite the sudden shutdown during the winter storms in February. Similarly, investment in export facilities in North America has continued; last year there was 14.2 mta of new capacity added, equivalent to around 25 additional VLGC cargoes per month, of which around half was at the Lonestar NGL facility in Nederland, Texas. In the second quarter of this year, AltaGas opened new export capacity at the RIPET plant in British Columbia and the Ferndale site in Washington state, with 15 cargoes loaded during the period. Not all of this west coast production is moving by VLGC, with Navigator Gas picking up some cargoes for its Handysize carriers.

Dorian LPG notes that North American export capacity of 54.3 mta in 2020 should increase to 59.2 mta this year and as much as 66.8 mta in 2022, more than double the 32.7 mta available in 2018. However, the expansion of Enterprise’s export facility in Houston has been delayed and the timing of new availability remains uncertain. Nevertheless, Dorian LPG says that overall utilisation rates in North America are around 76 per cent, indicating that more export volumes are potentially available, provided there is enough feed gas and that domestic prices do not keep additional production within the local market. There would be a ready export market for US output: China’s LPG imports alone are expected to grow by more than 20 per cent this year, driven by additions to PDH capacity and higher cracking demand. Six new PDH plants due onstream this year will generate a 12.3 mta import demand for LPG; three of these are already in operation, and another 21 are lined up to come online between 2022 and 2025. FURTHER AHEAD The demand side seems strong going forward. In addition to rising LPG consumption in

 LPG IMPORTS INTO ASIA ARE STILL INCREASING RAPIDLY BUT IT IS NOT CLEAR IF NEW SHIPPING CAPACITY WILL ARRIVE IN STEP WITH THE GROWTH IN TRADE

Chinese PDH plants, there is continued strong end-user demand in the Asian retail sector for household and commercial use. Demand from the petrochemical sector is variable and depends very much on the LPG/naphtha price spread, although BW LPG says that additional demand from this sector should arise as new projects are completed. Overall, BW LPG says it continues to be optimistic for 2022. “However,” it adds, “the high number of recent [VLGC] newbuild orders has increased the uncertainty for 2023”. The newbuilding orderbook currently stands at 23 per cent of the existing fleet and there is a heavy delivery schedule stretching through to 2023. However, this may be partially offset by the effects of continued Panama Canal inefficiencies, together with tightening emissions controls. On the one hand this will lead to increased scrapping of older vessels, given the high cost of getting them up to environmental standards, as well as slow steaming to bring emissions down. BW LPG says that 19 new VLGCs should be delivered into the fleet this year – of which nine have already arrived, with another 18 in 2022 and as many as 39 in 2023. It projects that the year-end fleet of 303 VLGCs in 2020 will rise to 322 this year and 373 in 2023, taking into account potential demolition activity. Avance Gas has similar numbers, pointing out that there are currently 30 ships in the fleet that are older than 25 years and that the International Maritime Organisation’s (IMO) energy efficiency expectations, along with other environmental regulations, may trigger increased scrapping towards 2025. Dorian LPG notes that no VLGCs have been scrapped since 2020 and, in light of IMO efforts, puts the number of potential demolition candidates at 47 vessels. Avance also notes that between 20 and 25 per cent of the fleet is due to take time off for drydocking in 2021 and 2022, further reducing available capacity on the water. This reflects the surge in deliveries of new ships in 2015 and 2016, now due their second special survey. Some maintenance has also been held over from 2020 due to the strong earnings available and Covid-related issues at shipyards. In a weaker market this year, that work is picking up again, though the Covid issues remain.

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PRESSURE POINTERS GAS TANKERS • THE SMALLER LPG TANKER SEGMENTS HAVE FACED CHALLENGES STEMMING FROM COVID RESTRICTIONS BUT BWEK HAS FOUND WAYS TO GENERATE GROWTH THE SMALL LPG tanker sector has gone through a period of consolidation lately, not least through the formation of BW Epic Kosan (BWEK) on the merger of the Epic Gas and Lauritzen Kosan fleets, which was completed this past March. BWEK is now the leading player in the small gas carrier fleet, with 76 ships on the water, of which 52 are owned and 24 chartered in. That size gives it some weight in the market sector in which it operates, primarily fully pressurised and small semi-refrigerated gas tankers, including a number of ethylene-capable vessels. Those are segments where the current

HCB MONTHLY | OCTOBER 2021

orderbook is small – BWEK quotes figures from Clarkson that indicate an orderbook in the fully pressurised sector equivalent to 3.8 per cent of the current fleet and in the small (under 13,000 m³) semi-refrigerated sector equivalent to just 2.0 per cent. With what amounts to a dominant position in the market, BWEK will be able to have a significant impact on the pace of new deliveries, helping it to maintain some control over the supply/demand position. The company also notes that having a large fleet allows it to deploy its vessels efficiently and help it to manage its response to the growing

imperative of sustainability, decarbonisation and the energy transition. IMPACT ON FINANCE BWEK has recently released its second quarter and half-year figures, which give some indication of the extent of the change in the company since the merger, as well as the conditions under which it is operating this year. Looking specifically at the second quarter, which gives the full measure of the change, the number of calendar days for the entire fleet increased by 54.5 per cent; while timecharter equivalent earnings were also up, by 5.1 per cent, there was a reduction in average fleet utilisation and increases in both operating costs and general and administrative expenses. So, while revenues improved by 77.2 per cent to $81.7m for the three months to end June, EBITDA was up by 36.1 per cent at $22.6m and net profit actually fell compared to the year earlier to $3.3m. “Our fleet mix, which includes pressurised, semi-refrigerated and ethylene-capable

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vessels, combined with a blended stable underlying market, saw our time charter earnings (TCE) per calendar day for the quarter increase by 5 per cent year-on-year to $10,848 per day, whilst our underlying OPEX costs increased by 17.4 per cent to $4,754 per day, impacted both by the change in our fleet mix to include the more expensive to operate semi-refrigerated and ethylene vessels, and by Covid-19 costs,” explains CEO Charles Maltby. “Our SG&A has increased due to costs incurred during our combination and can be expected to reduce as we work towards operational efficiency. “Covid-19 continues to impact our business to a greater extent than the same quarter last year, including increased overall operational expenses primarily related to crew change expenses and freight forwarding costs for spares, and increased offhire for our fleet as we position vessels to facilitate crew changes and meet quarantine requirements,” Maltby continues. “We fully endorse the work of international organisations and industry bodies to facilitate safe crew transfers and vaccination and are grateful to those nations now willing to assist in crew vaccination.” WHERE THE BUSINESS IS Looking ahead, Maltby says he expects the challenges experienced during 2020 to persist at least to the end of this year. “However,” he adds, “there are strong pockets of residential LPG demand and increased activity in European refining and petrochemical plants”. Seaborne LPG trade (in tonne-mile terms) is forecast to increase by 3.9 per cent for 2021 as a whole, while fleet growth in the smaller gas tanker segments is projected at just 1.4 per cent, without taking scrapping into account. BWEK notes that the ‘big four’ Asian economies – China, India, Japan and South Korea – imported 14.8m tonnes of LPG in the second quarter of this year, 5 per cent ahead of the previous year. This was driven by a significant increase in demand from Chinese petrochemical consumers and a more modest rise in residential and commercial demand in India, although imports in both Japan and South Korea were lower than in 2020. Bangladesh and Vietnam also imported more LPG in the second quarter, though BWEK



AHEAD OF THE CURVE BWEK reports that, during the second quarter, its fleet carried out 377 loading operations totalling 1.44m tonnes – 52 per cent LPG and 48 per cent petrochemical gases – and was active in 202 different ports around the world. Of its current fleet of 76 ships, 26 were deployed in Asia, including ten of its 16 ethylene carriers, with 11 in the Americas and the remaining 39 operating in Europe, the Middle East and Africa.

Another significant part of BWEK’s operations is in ship-to-ship transfers (STS) of LPG, although it performed fewer during the second quarter due to lower demand off eastern India and in the Caribbean. The 84 STS operations were 26 per cent below the level a year earlier. However, it has now also begun performing STS operations with LPG bunkers for BW LPG, which has converted some of its VLGCs to run on LPG fuel. BWEK also says that the increased demand for VLGCs – which has encouraged a lot of newbuilding contracting – has also been accompanied by a tight supply position, with smaller vessels enjoying the opportunity to pick up increased tonne-mile business on some routes. Since the end of the quarter, BWEK has agreed to acquire Odfjell’s two LPG/ethylene tankers, sisterships of 8,900 m³ capacity built in 2008. The transaction will involve a cash payment to settle the mortgaged loans on the ships, along with newly issued shares in BWEK that will give Odfjell a 4.3 per cent shareholding in the company. Aside from developing its fleet and operational portfolio, BWEK is preparing to face environmental challenges. “We are working alongside industry partners not only to reduce emissions but also including projects

The company also notes that its increased size gives it opportunities to mitigate downside risk by diversifying earnings streams and flexing between LPG and petrochemicals; it also now has the option to develop new customers and investigate niche markets and new routes.

that support wider decarbonisation, such as shipping related to carbon capture and storage,” Maltby says. “Many of our vessels are capable of carriage of future clean fuels including ammonia and, with modest investment, other specialty gases such as CO2.” bwek.com

THE COVID PANDEMIC MAKES SUPPLY AND DEMAND FORECASTING DIFFICULT, WHILE ALSO BRINGING ADDITIONAL COSTS FOR CREW CHANGES AND SPARE PARTS

expects Vietnam to be flat for the year as a whole. Furthermore, a recent resurgence in Covid-19 infections in south-east Asia and China is expected to affect LPG and olefin demand in the third quarter. Rising prices for propylene and butadiene in the Atlantic basin also offered a market for Asian product, providing backhaul cargoes for both small and large LPG tankers, with a sharp decline in Chinese imports of butadiene making more volumes available on the global market.

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SWING TIME CHEMICAL TANKERS • THE COVID PANDEMIC CONTINUES TO CAUSE PROBLEMS FOR CHEMSHIP OPERATORS, WITH VARIABLE DEMAND AND HIGHER COSTS, AS ODFJELL EXPLAINS The chemical tanker market has remained “challenging” for much of 2021 and there are few signs of a significant improvement in the near term, says Odfjell, one of the three leading operators in the market. However, the company adds, the underlying fundamentals are still sound.

Nevertheless, in its second quarter results released in mid-August, Odfjell reported a slight increase in timecharter earnings, from $120.4m in the first quarter to $123.4m, though the figure for the first half, at $243.8m, is 6 per cent down on the prior year. Second quarter EBITDA of $56.6m was an improvement on the

This year’s problems have come through a combination of competition from the clean petroleum product (CPP) sector, where low rates have encouraged swing tonnage to look for easy chemicals cargoes, and the ongoing Covid-19 pandemic, which has increased costs for crew repatriation and the provision of spares.

prior period but, again, first half EBITDA of

HCB MONTHLY | OCTOBER 2021

 LARGE CHEMICAL TANKERS HAVE BEEN FACING COMPETITION THIS YEAR FROM TONNAGE MOVING IN FROM THE WEAK CLEAN PETROLEUM PRODUCTS MARKET

$109.7m was well down on the previous year’s figure of $144.2m. Indeed, 2020’s first half net profit of $26.5m has turned into a net loss of $23.4m for the first six months of this year. The second quarter was also impacted by a high number of offhire days due to scheduled drydocking, though the improvement in timecharter earnings compared to the first quarter reflected the easing of the negative effects of the Texas freeze in February and March, which helped improve volumes and fleet utilisation. “The commodity chemical tanker market remained challenging during the [second] quarter,” Odfjell says. This is a demand-side issue, as the volume of newbuilding deliveries remains low. “The main challenges relate to volume disruptions related to Covid-19 and a historically weak CPP market leading to supply pressure from swing tonnage,” the company adds. There were also higher volumes of specialty chemicals in Odfjell’s contract of affreightment (COA) portfolio, following the easing of the

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Texas freeze and improved volumes from areas still affected by Covid-19. “Availability of spot volumes had large regional variations, with a lacklustre market in the Atlantic Basin while Asian spot volumes were strong as they replaced US and Middle Eastern exports to supply the western hemisphere this quarter,” the company adds. Part of that was the result of the imposition of anti-dumping duties on ethylene glycol imported into Europe from the US and Middle East, which led to higher volume of imports from Asia. Odfjell also notes some improvement in the vegoils sector, with increases in trade volumes and vessel demand, leading to an improvement in rates towards the end of the second quarter. LOOKING AHEAD Kristian Mørch, Odfjell’s CEO, remains upbeat, saying: “We continue to operate well, but the near-term market remains unpredictable due to Covid-19 and the weak CPP markets. We maintain our fundamentally positive view on the chemical tanker markets but the third quarter is usually a seasonally slow quarter,

which together with a continued challenging CPP market may result in a slightly weaker [third quarter]”. Global economic activity has recovered somewhat in recent months, Odfjell notes, driven by increasing vaccination rates and political stimulus initiatives that have helped drive growth in industrial production. The recovery is uneven, though, and the Covid-19 Delta variant remains a cause for concern. Odfjell remarks that the International Monetary Fund (IMF) has revised its forecasts of the rate of recovery in emerging Asian markets downwards and expects that the global recovery will be led by the advanced economies, where improved access to vaccines and fiscal support are expected to sustain a further normalisation of industrial activity. This could bode well for chemical demand and the chemical tanker market into 2022.

 VESSEL SUPPLY IS EXPECTED TO REMAIN TIGHT BUT AN IMPROVEMENT IN DEMAND AND AN UPTURN IN FREIGHT RATES MAY HAVE TO WAIT TILL NEXT YEAR

The main challenges remain the unpredictability caused by the ongoing Covid-19 pandemic and competition from the CPP market. Odfjell does expect prices for crude oil and clean products to improve during the second half of this year, which should strengthen the CPP market and reduce the volume of swing tonnage in the chemicals sector. In addition, growth in chemical tanker supply is expected to remain low for the next two to three years. The chemical tanker fleet is ageing, Odfjell says, and it expects more scrapping due to regulatory pressures, as well as some tonnage moving out of the core chemical trades as a result of age restrictions imposed by charterers. New contracting activity remains below historical averages, driven by uncertainty over future environmental controls as well as the current unattractive market. Overall, Odfjell expects annual chemical tanker demand growth to average 3 per cent over the 2021-2023 period, while the global fleet will grow at an average of 1 per cent per year. www.odfjell.com

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70 COURSES & CONFERENCES

BACK IN BUSINESS SHOW REPORT • CHEMUK WAS ONE OF THE FIRST POSTLOCKDOWN EVENTS, FINDING A BIG AUDIENCE RELIEVED TO BE BACK ON THE EXHIBITION FLOOR THE CHEMUK 2021 expo for the UK’s chemical industry supply chain opened its doors at the NEC in Birmingham on 15 and 16 September, enjoying a strong level of enthusiasm from both exhibitors and visitors. More than 2,400 people attended the show, along with around 1,100 exhibition personnel from more than 350 companies. “In the wake of unprecedented challenges and disruptions thrown up to all industries, with the outbreak of the global Covid-19 pandemic, the ChemUK team were so delighted to see attendee groups from across all segments of the chemical industries, as well as representation from across all regions,” notes Ian Stone, managing director of organiser UK Industry Events. “It was so satisfying to bring the industry back together again!” “With strong pre-registration levels and a great ‘buzz’ across industry and social channels,

the industry’s eagerness to engage again in a dynamic physical trade show environment was palpable and borne out as soon as the doors opened on day one,” Stone adds. To attract such a large audience at a time when health concerns are still high was quite an achievement and was gladly received by exhibitors, starved of marketing opportunities for so long. “I don’t think any of us knew what to expect this year, with the whole pandemic situation, but the event was superb,” says Dr Kerry Elgie, director of business development at Asynt. “One of the important factors for Asynt was the variety of people through the door. Alongside our amazing

 A BIG EXHIBITOR LIST AND CRITICAL SPEAKERS HELPED ATTRACT A LARGE CROWD EAGER TO GET BACK INTO THE SWING OF CONFERENCING

regular customers, we also met so many new faces and companies relevant to our industry.” Asynt, like many others, has already booked its stand for ChemUK 2022. GOING LIVE Elgie is not alone in praising the organisers. Richard Lock, managing director of Holiferm, has this to say: “ChemUK 2021 was a fantastic opportunity. “We were excited to share our bio-surfactants with leading industry experts, who loved our samples. We also engaged with many members of the UK chemical supply chain, with a view to supporting us as we build the largest dedicated bio-surfactant plant for household and personal care in the world. We are really looking forward to coming back in May 2022 to share the progress we have made and renew the relationships we have formed.” “Airedale Chemical was delighted to play our part in our very first trade show at this year’s ChemUK,” adds Daniel Marr, Group CCO of the Airedale Group. “It proved to be a decisive kick start to the chemical trade show calendar and an event that certainly delivered in footfall. We look forward to showcasing all our Airedale Group business divisions at next year’s event.” Alongside the trade show floor, a free-toattend two-day speaker programme presented more than 150 expert speakers and panel sessions discussing the big trends, including sustainability, Brexit, green chemistry, digitisation, innovation, UK REACH and the skills gap. But, as ever, it is not just about shaking hands and sitting in a conference room. “Nothing beats the ‘live’ trade show experience for networking and connections, vital intelligence, ideas, inspiration, and just soaking up your sector’s current position,” says Ian Stone. “You can also see what is happening immediately ‘over the horizon’ as well as longer term, in a dynamic, spontaneous, and visually engaging way; empowering and informing those crucial next steps.” Industry will be able to get back together and do it all again at ChemUK 2022, scheduled to take place on 11 and 12 May at the same venue. Keep an eye on www.chemicalukexpo.com for up-to-date information.

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CONFERENCE DIARY The ongoing global Covid-19 pandemic continues to caused the cancellation or postponement of many events planned for the next few months and many organisers are taking their events online. HCB is doing its best to keep on top of developments but readers should check the dates and locations shown below as things change rapidly.

OCTOBER ILTA October 4-6, Houston 40th annual operating conference and trade show of the International Liquid Terminals Association www.ilta.org EPCA Annual Meeting October 5-7, virtual 55th annual meeting of the European Petrochemical Association www.epca.eu AFPM Security Conference October 5-6, virtual Conference on security at fuel refining and petrochemical plants www.afpm.org/events/292d4a0000075d Hazardex 2021 & PPTEx October 6-7, Harrogate Conference and exhibition on hazardous area operations and personal protective technology www.hazardex-event.co.uk ECTA Responsible Care Training Workshop October 7, Brussels/virtual Update on Responsible Care implementation in European chemical transport https://ecta.com/product/ecta-responsiblecare-training-workshop-2021/ Argus LPG Moscow 2021 October 7-8, Moscow/virtual 15th annual event for the regional LPG sector www.argusmedia.com/en/conferencesevents-listing/cis-lpg-2021 Tank Truck Week October 10-13, Dallas NTTC’s Annual Tank Truck Show & Maintenance Seminar https://tanktruck.org/Public/Events/Tank-TruckWeek/Public/Events/Tank-Truck-Week.aspx IATA World Cargo Symposium October 12-14, Dublin 14th global conference on air cargo www.iata.org/events/wcs/pages/index.aspx

LNGgc October 12-14, virtual 11th annual conference on LNG shipping and trade https://informaconnect.com/lnggc-london/

ADIPEC November 15-18, Abu Dhabi 37th annual Abu Dhabi International Petroleum Exhibition & Conference www.adipec.com

AFPM IPC October 17-19, San Antonio AFPM’s annual International Petrochemical Conference www.afpm.org/events/2926d800000001

Hazards 31 November 16-18, virtual Conference and exhibition on best practice in chemical and process safety www.icheme.org/career/events/hazards-31/

European Bulk Liquid Storage Summit October 27-28, Cartagena Eighth annual conference on the European market for bulk liquids storage www.wplgroup.com/aci/event/europeanbulk-liquid-storage/

ECTA Annual Meeting November 18, Düsseldorf Annual meeting of the European Chemical Transport Association www.ecta.com/product/ecta-annual-meeting-2021/

NOVEMBER Flame November 2-4, Amsterdam/virtual 27th annual conference on natural gas and LNG in Europe https://informaconnect.com/flame-conference/ World LNG Series: Americas Summit November 2-4, Lake Charles 18th annual convention for LNG buyers and sellers www.worldlngamericas.com APLA Annual Meeting November 6-9, São Paulo 40th annual Latin American petrochemical conference www.apla.lat/2019-buenos-aires-2/?lang=en NACD Annual Meeting November 8-11, Aventura, FL 50th Annual Meeting of the National Association of Chemical Distributors www.nacd.com/education-meetings/ meetings/2021-annual-meeting/ CRAC-HCF 2021 November 8-12, virtual November 15-16, Huangzhou 13th Chemical Regulatory Annual Conference and Asian Helsinki Chemicals Forum www.reach24h.com/en/events/webinar/crac-hcf2021-hybrid-platform-are-you-ready.html

V Med Hub Day 2021 November 18-19, Tarragona/virtual Fourth annual workshop on regional tank storage issues www.hubdaytarragona.com Oil & Non Oil November 24-26, Verona Trade show on fuel and non-oil storage and distribution in Italy and Europe www.oilnonoil.it Oil Terminal 2021 November 24-26, St Petersburg 16th oil terminal congress and exhibition www.oilterminal.org/en World LNG Summit November 30-Dec 3, Rome 21st annual conference and awards dinner www.worldlngsummit.com

DECEMBER NISTM December 1-2, The Woodlands 14th Annual National Aboveground Storage Tank Conference & Trade Show www.nistm.org GPCA Forum December 7-9, Dubai 15th annual meeting of the Gulf Petrochemicals & Chemicals Association www.gpcaforum.net

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INCIDENT LOG ROAD/RAIL/AIR INCIDENTS Date

Location

Vehicle Type

Details

Source

5/7/21

Ihebu-Ode, tricycle LPG Ogun, Nigeria

Three people were injured when leaking gas cylinder exploded; rider and passenger had dismounted to investigate when LPG was ignited by heat from nearby car with faulty radiator

The Eagle

10/7/21 Brewster, freight train isooctane Minnesota, US

16 cars of UP train derailed near New Vision Cooperative fertiliser plant; crew unhurt; small leak of isooctane from one car; wreck was cleared and lines open again late the next day

The Globe

12/7/21 Troy, road tanker Michigan, US

gasoline, diesel

Tank truck with 14,000 gal (53 m³) fuel ran into median on I-75, catching fire immediately; highway closed for some time; roadway needed significant repairs; driver suffered only minor injuries; driver inattention likely

NY Post

12/7/21 nr Wagener, road tanker S Carolina, US

gasoline, diesel

Tank truck ran off SC 39, overturned in grass; some leak of fuel from cargo tank; rest was transferred through tap in tank; no injuries reported; police investigating cause; severe traffic disruption

Post & Courier

14/7/21 Brampton, road tanker gasoline Ontario, Canada

Tank truck collided with light standard on Highway 410, spilling gasoline cargo over roadway and nearby area; highway closed in both directions; fire crews from Toronto Pearson airport helped with foam blanket

CP24

15/7/21 Chennai, road tanker oil India

Road tanker overturned in Adyar after driver lost control, swerved into median; entire load of oil escaped, making road slippery; oil said to be used in manufacturing soap; driver suffered injuries in crash

Times of India

18/7/21 Malanga, road tanker gasoline Siaya, Kenya

At least 17 people died, many others injured after tanker overturned, caught fire after driver tried to avoid collision; locals ran to collect gasoline spilling from one compartment before police arrived; tanker exploded

Nation

19/7/21 Beaurières, road tanker toluene Drôme, France

Road tanker overturned on bend in Col de Cabre; no leak from tank reported but road had to be closed for response, causing lengthy diversion for other traffic; toluene cargo was transferred to second tanker

Le Dauphiné

19/7/21 McDavid, freight train Florida, US

25 cars of CSX train derailed in remote area at night, causing problems for responders; some derailed cars had molten sulphur, liquid ammonium nitrate, phenol but no leaks reported; cause under investigation

North Escambia

20/7/21 Kisumu, road tanker diesel Kenya

Road tanker ran off road into River Auji; most of its cargo spilled to the river; police monitored wreck all night to deter pilfering; tanker recovered next day, towed to Shell yard in Ahero; driver, cleaner absconded

Capital FM

24/7/21 nr Yunta, road tanker SA, Australia

Driver of road tanker with sulphuric acid heading from Port Pirie to Beverley uranium mine was alerted to leak from tank compartment; some 4,500 litres believed lost; leak was caused by badly fitted valve

ABC

25/7/21 nr Otavi, freight train acid Namibia

18 tank cars with unspecified acid in TransNamib train derailed between Otavi and Otjiwarongo, cause not known; 11 tank cars overturned, two leaking acid; operator cordoned area off, activated emergency plan

ANI

1/8/21

Kibuba, road tanker fuel Kwilu, DR Congo

Fuel tanker collided with crowded bus on NH1, sparking fire that engulfed both vehicles; at least 33 people believed to have died in the blaze, mostly bus passengers

AFP

1/8/21

Broward county, road tanker gasoline Florida, US

Driver was killed when he lost control of tank truck on entrance ramp to turnpike; vehicle hit concrete wall, overturned, landed on its roof; 8,000-gal (30-m³) gasoline cargo exploded; highway closed for response

Miami Herald

13/8/21 Goli, road tanker fuel Nebbi, Uganda

Road tanker caught fire at customs border post, reportedly after hard braking caused overheating; tanker exploded, spreading flames to other vehicles, nearby houses; no serious injuries; driver fled

Daily Monitor

15/8/21 Tleil, road tanker gasoline Akkar, Lebanon

At least 28 people were killed, 79 more injured by explosion in road tanker with 30,000 litres gasoline; reports suggest vehicle had been smuggled from Syria, army had confiscated it and was distributing fuel to locals

MENA

15/8/21 Ogidi, road tanker fuel Anambra, Nigeria

Truck rammed into stationary fuel tanker near market; both vehicles caught fire, which spread to 14 buses parked nearby and several buildings; two people killed, several others injured

Vanguard

17/8/21 Thane, road tanker methanol Maharashtra, India

Road tanker overturned near Gaimukh; no loss of methanol cargo reported and no injuries; driver was said to be drunk; responders managed to move wreck to side of road to avoid disrupting traffic on busy road

Times of India

23/8/21 Mecca, road tanker gasoline Saudi Arabia

Road tanker was involved in collision on Mecca-Jeddah highway; spilling fuel ignited, spreading fire for several hundred metres along road; at least 11 vehicles damaged, including tanker, but no injuries

Gulf Business

25/8/21 nr Coalinga, truck California, US

Semi-truck overturned after accident on Highway 198; truck was carrying 5,500 lb (2.5 tonnes) ammonium nitrate; hazmat teams closed road to clear spill

ABC

26/8/21 Mukhonje, road tanker fuel Kakamega, Kenya

Speeding road tanker lost control on Eldoret-Webuye road, veering off road and crashing into transformer poles; tanker caught fire, which spread to nearby shops, other vehicles; four people died, seven others injured

Nation

26/8/21 Ikorodu, road tanker gasoline Lagos, Nigeria

Fire broke out in tanker loaded with gasoline on Owode Ibeshe road; prompt attendance by responders averted a catastrophic explosion and extinguished fire in two hours; cause of fire unknown

Vanguard

HCB MONTHLY | OCTOBER 2021

Substance

sulphur, AN

sulphuric acid

ammonium nitrate

SAFETY 73

MARINE/INLAND WATERWAY INCIDENTS Date

Location

2/7/21

Vessel

Substance

Details

Source

Campeche Sound, pipeline natural gas Mexico

Ruptured underwater pipeline caught fire near Pemex oil platform at Ku Maloob Zaap field; fire burned for several hours but unlikely to be any significant environmental impact; no injuries reported

Reuters

8/7/21

Dubai, UAE

Explosion, fire aboard feeder containership arriving to berth at Jebel Ali; blast shook nearby buildings but no serious damage or injuries reported; not known what caused the blast but likely to be flammables/explosives

AFP

10/7/21

Karimunbesar, Ketaling — Indonesia

Fire broke out on cargo deck of product tanker (6,500 dwt, 1998) recently drydocked at Multi Ocean floating dock; fire was brought under control; electrical short thought likely cause

FleetMon

18/7/21

off Aden, — oil Yemen

Abandoned, unmanned oil tanker (no name) sank off Aden, causing leak of oil, some of which washed up on nearby beaches; tanker had been anchored for seven years, said to be owned by a local businessman

FleetMon

26/7/21

Colombo, Sri Lanka

Containership departed Mundra, shortly afterwards reporting one container leaking nitric acid; Sri Lanka Ports Authority allowed ship to berth in Colombo, where box was offloaded; found leaking drums, repackaged acid

Maritime Executive

27/7/21

Kiel Canal, Orasund unknown Germany

Chemical/oil tanker (4,975 dwt, 2008), cargo unknown, enroute Latvia for Ireland, suffered engine failure in Kiel Canal and collided with general cargoship BBC Parana; both vessels damaged but no leaks reported

FleetMon

30/7/21

nr Buenos Aires, Argentina

LNG tanker (170,000 m³, 2018), presumably in cargo with load from Corpus Christi, grounded in Rio de la Plata fairway; ship was refloated next day, headed for Escobar LNG terminal to offload, then for inspection

FleetMon

Ocean unknown Trader

Seaspan nitric acid Lahore

Hoegh LNG Esperanza

MISCELLANEOUS INCIDENTS Date

Location

2/7/21

Plant type

Substance

Details

Source

Navodari, oil refinery oil Romania

One employee killed, five more injured by explosion, fire at Petromidia refinery, reportedly at gas/oil transmission station; nearby residents advised to shelter in place during lengthy response

Xinhua

3/7/21

Palghar, Maharashtra, India

chemical chemicals plant

Five workers were injured by explosion, fire at chemical facility in Boisar industrial area; cause not yet known and few details available; investigation underway

NDTV

3/7/21

Izhevsk, Udmurtia, Russia

water chlorine treatment plant

Some 800 kg chlorine leaked from container (storage tank?) at water treatment facility; workers told to leave, nearby residents put on evacuation alert; authorities said gas did not leak beyond the plant, no injuries reported

Tass

5/7/21

Bang Phli, Bangkok, Thailand

plastics chemicals factory

Massive explosion at unidentified factory manufacturing foam, plastic pellets shook terminal building at nearby Suvarnabhumi Airport, damaged homes; evacuation ordered in case of further explosions in chemicals

6/7/21

Einkhosh, pipeline petroleum Iran

Three oil workers killed by explosion in pump house on oil and gas pipeline in south-west Iran; cause of blast not known but temperatures around 50˚C had been reported

ABC

6/7/21

Targa Mures, Romania

chemical ammonia plant

One worker badly injured by explosion in ammonia unit of Azomures chemical plant; reported that there was a fire in the synthesis column of the unit during start-up process; no ammonia emissions reported;

Stiri pe Surse

13/7/21

St Helens, Merseyside, UK

logistics ammonia facility

Distribution centre was evacuated after reports of ammonia leak; one person hospitalised; locals said similar event took place ten years previously, though residential development has encroached on the area since

Liverpool Echo

14/7/21

Kharj, Saudi Arabia

ammunition munitions dump

Explosion at ammunition dump said to be used to store “unserviceable munitions”; Saudi army said event was an accident, without further details; no reports of injuries or damages

16/7/21

Muschketovo, pipeline natural gas Donetsk, Ukraine

Explosion on natural gas pipeline in Budyonivsky district of disputed Donetsk region near railway station caused fire; no casualties reported; cause not yet known

112. int’l

16/7/21

Ardmore, Oklahoma, US

One person killed by large explosion at Asphalt Express plant; no other serious injuries; cause of blast not yet known

KXII

17/7/21

Spring, water park chemicals Texas, US

More than 60 people had to be decontaminated and 26 treated in hospital after airborne chemical leak at Six Flags Harbor water park; nature of the chemicals involved not known but caused skin, inhalation irritation

NBC

20/7/21

Rivne, Ukraine

nitrogen nitric acid plant

Explosion at Rivneazot caused orange cloud to cover the city; initial investigation suggests explosion in nitric acid unit; authorities keen to play down risks to nearby residents

112. int’l

27/7/21

La Porte, Texas, US

chemical acetic acid plant

Two contract workers killed, more than 30 others injured by release of 100,000 lb (45 t) acetic acid from acetyls unit at LyondellBasell facility; no explosion reported; CSB investigating

CNN

asphalt asphalt plant

WWW.HCBLIVE.COM

74 SAFETY

HOLD TIGHT CONTAINERS • RECENT CAPACITY SHORTAGES IN LINER SHIPPING HAVE PROMPTED SOME SHIPPERS TO LOOK ELSEWHERE. EVEN BULK CARRIERS ARE BEING REPURPOSED, WITH RISKS THE STEAMSHIP MUTUAL P&I Club says it has received an increasing number of enquiries concerning the carriage of containers on vessels not primarily designed for the purpose, including bulk carriers and general cargo vessels. The Club says it knows of at least one case in which such a practice led to the collapse of a container stack within the hold of a bulker, causing it to return to port.

the deck of such vessels, there are risks, the Club adds, in a note issued to its members. It draws attention to the need to ensure that a ship is suitable for the safe loading, carriage and discharge of the containers and is equipped with the appropriate means to secure them. Container stack collapses, with consequential damage to people, property and the environment, are not uncommon even on dedicated vessels, it notes. Furthermore, the

While there is no regulatory reason to avoid the carriage of containers in the holds of or on

carriage of containerised cargoes on vessels that are not specifically designed for that purpose may well constitute a material change of risk, with implications for insurance coverage: it is important that P&I Clubs and underwriters are aware of such operations in advance.

 BULKERS CAN CARRY CONTAINERS SAFELY BUT MAY NEED ALTERATIONS TO BE ABLE TO DO SO

HCB MONTHLY | OCTOBER 2021

CONSTANT COMPLIANCE When shipping containers on non-cellular vessels, shippers must still be aware of the relevant rules and regulations and ensure they are being complied with. For instance, there should still be a Class-approved stowage and securing plan, in alignment with the Cargo Securing Manual. Carriage, stowage and securing of containers must be in compliance with the appropriate sections of the Code of Safe Practice for Cargo Stowage and Securing (CSS Code), in particular Annex I, which deals with the safe stowage and securing of containers on the decks of ships not specially designed and fitted for carrying containers; bills of lading will need to be amended accordingly. Particular care must be taken with containers containing dangerous goods, which must be stowed and segregated as per the International Maritime Dangerous Goods (IMDG) Code, and with refrigerated containers, which will need a power supply. Shippers should also verify there is adequate cargo securing gear, that it is inspected and certified and in good condition, with similar provisions regarding lashing equipment. Any temporary fittings should be inspected to ensure they have adequate strength; Class-approved welders may be considered. Furthermore, the ship’s loading computer will need to be able to undertake the stability and lashing calculations for the intended cargo, otherwise alternative Class-approved arrangements must be in place. It may be necessary to engage an independent marine warranty surveyor. Steamship Mutual’s note includes a lengthy list of other considerations that may affect the security and safety of the containers and the vessel itself, taking account of the effect of the ship’s motion in the sea. There must also be safe access to the cargo area. Finally, there should be compliance with applicable international and local regulations, laws and industry best practice. Risk assessments may need to be carried out and additional training may be necessary. The Club’s note includes some useful references and pointers to resources available on its website, www.simsl.com.

IN THE FAST LANE ROAD • WP15 IS HAVING TO HURRY TO COMPLETE ITS LATEST UPDATE TO ADR, GIVEN COVID-RELATED RESTRICTIONS, BUT PLENTY OF CHANGES HAVE ALREADY BEEN DECIDED THE UN ECONOMIC Commission for Europe’s (ECE) Working Party on the Transport of Dangerous Goods (WP15) held its 109th session this past 4 to 7 May. Due to ongoing travel restrictions and quarantine measures, the session was held in a hybrid format, with both in-person and online attendance. That was not the only issue, however; financial constraints at the UN reduced the availability of interpreters and, as decisions can only be taken when full interpretation is available, the opportunity to agree amendments to ADR, the regulations governing the transport of dangerous goods by road in Europe and, increasingly, elsewhere in the world, was curtailed.

will be the last of the biennium during which the amendments due to enter into force on 1 January 2023 could be finalised and adopted. It will be vital for the autumn Joint Meeting of RID/ADR/ADN experts and the 110th session of WP15 to have full interpretation available. Nonetheless, some work was completed during the 109th session, which was chaired by Ariane Roumier (France) with Alfonso Simoni (Italy) as vice-chair. Representatives of 23 countries took part in the session, along with the EU, the Intergovernmental Organisation for International Carriage by Rail (OTIF) and seven non-governmental organisations. Opening the session, Dmitry Mariyasin, deputy executive secretary of ECE, welcomed

Several non-English-speaking delegations expressed their regret that only a limited number of formal meetings with interpretation were available. The Working Party agreed that this was impacting the effectiveness of its work and noted that the next, 110th session – due to take place from 8 to 12 November,

the participants and stressed the importance of ADR during the Covid-19 pandemic when there is a vital need to ensure the safe transport of dangerous goods for medical use. He welcomed the measures that the competent authorities had taken, including the various multilateral agreements that

HCB MONTHLY | OCTOBER 2021

allowed continuity of service. He also emphasised the importance of the work on the use of battery electric vehicles and hydrogen fuel cell vehicles for the transport of dangerous goods within the framework of energy transition. Before getting on to the work in hand, WP15 took note of the decisions made by the Inland Transport Committee (ITC), its parent body, at its 83rd session in February, which included some relating to the work of WP15 in the context of ITC’s strategy for the period to 2030. While most of these appear to be covered by ongoing work, it was noted that the Working Party might agree to the need for ADR to be translated into all six official UN languages, as it is being used more widely around the world as the basis for domestic regulations on the transport of dangerous goods by road, often as a legal instrument. As is usual at the WP15 sessions, the Working Party encouraged the 13 countries that have not yet ratified or acceded to the Protocol of 1993 to do so. JOINT MEETING The first substantive task facing WP15 was to examine the report of the RID/ADR/ADN Joint Meeting’s spring session and to consider the amendments that were adopted (HCB July/ August 2021, page 88 and September 2021, page 54). These were endorsed, with some editorial changes. For instance, in the new 1.1.4.7, which permits the use of US DOT-specification pressure receptacles, the term “The consignor for ADR carriage” is left in square brackets pending clarification: OTIF will prepare a document on this subject for the next session. The new transitional provision, designed to apply primarily to extra-large tank containers, in 1.6.4 is similarly left in square brackets for confirmation at the 110th session. The Working Party also discussed the reference to the EU’s multimodal guidelines,

 THE PALAIS DES NATIONS IN GENEVA (ABOVE) IS A QUIETER PLACE DURING THE PANDEMIC - APART FROM BUILDING WORK - MAKING IT HARD TO GET FULL INTERPRETATION TO ALLOW DECISIONS TO BE ADOPTED

REGULATIONS 77

the Inland TDG Risk Management Framework, proposed for 1.9.4. Some delegates reiterated that they felt it premature to include this reference, as the guidelines are still in development and will need to be updated. However, as the guidelines will not be binding, it was decided to go ahead with the addition of a note in 1.9.4 referring to the EU document. Any delegations wishing to reconsider this decision were invited to submit comments to the Joint Meeting. PROPOSALS FOR AMENDMENT France returned to the issue of the rear protection of tank vehicles and, in particular, how to interpret the required 100 mm clearance between the rear wall of the tank and the rear bumper (below). On the basis of comments made at the previous session, France came with some proposals to amend 9.7.6 to provide some clarity on the current requirements. In an informal document, the Netherlands reminded the Working Party that the existing provisions date back a long way, to a time when terms such as ‘tank’ and ‘shell’ were not well defined. After an extensive investigation, its paper offered an alternative amendment for 9.7.6.

Most delegations came down in favour of the French proposal, with some comments and suggestions for its improvement. It was also felt that more time was needed to allow manufacturers to make adjustments and the envisaged transitional provision should run to January 2025. France will return with a formal proposal at the next session. Meanwhile, some of the points raised by the Netherlands suggested that better definitions are required in the areas of tank construction and protection; this may be worked on in the future. The Netherlands also noted that the World Forum for Harmonisation of Vehicle Regulations (WP29) had, at its March 2021 session, adopted amendments to the Uniform provisions concerning the approval of vehicles with regard to their Tyre Pressure Monitoring Systems (UN Regulation No 141) with the aim of extending the application of these provisions to heavy-duty vehicles. Several delegations considered that a reference to this Regulation in ADR could improve safety in the transport of dangerous goods. The International Organisation of Motor Vehicle Manufacturers (OICA) made some comments on the issue, noting in particular that the latest amendments to UN Regulation No 141 are not yet widely adopted, potentially

WWW.HCBLIVE.COM

also in some ADR countries, and that specific tyre/wheel configurations authorised in some countries may not in any case be compliant. If the Working Party felt it worthwhile referencing the new regulation – an issue on which OICA was neutral – it should not be done too soon. The Netherlands took note of this and other comments, inviting further comments in writing prior to a formal proposal at a later session. OICA also commented on an informal document from Spain, setting out some proposals resulting from work by the Joint Meeting’s boiling liquid expanding vapor explosions (BLEVE) Working Group. This contained several alternatives, with a focus on engine fire suppression systems and tyre fire protection systems. A number of comments were made and the representative of Spain urged any further comments to be provided ahead of the next meeting of the Working Group on 27 May. That group plans to submit an official document at the next session; meanwhile, other fire protection measures, including proposals on safety valves, will be made separately to the Joint Meeting, as they are applicable to all land transport modes. The European Chemical Industry Council (Cefic) submitted an interim report on behalf

HCB MONTHLY | OCTOBER 2021

of the informal working group established to consider whether it might be appropriate to amend the vehicle stability requirements in 9.7.5. The group’s discussions covered the calculation of the height of the centre of gravity of tanks, the applicability of UN Regulation No 111, and the impact of electronic stability control in preventing rollover incidents. A number of options are being considered, including the extension of UN Regulation No

111 to cover higher pressure tanks, and the deletion or amendment of 9.7.5.1, although it was commented that one of the advantages of 9.7.5.1 is its simplicity. The working group has agreed to conduct a survey of the height of centre of gravity in tankers operating in Europe and to consider whether 9.7.5.1 should be amended to reduce the maximum height of the centre of gravity. An initial, limited survey suggests that current tankers already have a

REGULATIONS 79

lower centre of gravity than is indicated in 9.7.5.1. The Working Party noted these results and readied itself for future proposals for amendment. The Netherlands informed the Working Party about the results of the work of the task force on the use of battery electric vehicles (BEV) and hydrogen fuel cell vehicles (HFCV) for the transport of dangerous goods. WP29 had provided information on the aspects that are covered by the safety regulations in UN Regulation 100 (for BEVs) and UN Regulation 134 (for HFCVs). These are currently being reviewed. Meanwhile, guidance is being developed for emergency responders in dealing with accidents involving these vehicles. As it remains unclear how the use of heavy-duty BEVs and HFCVs will develop it was decided that it would be appropriate to continue work in separate groups, one involving vehicle manufacturers, organised by OICA, and a second with consignors and carriers. OICA reported back on the first group’s discussions, confirming that most of the potential configurations were now described and that work was being done to finalise an inventory of changes needed in Chapter 9.2 of ADR. It seems optimistic to think that requirements for BEVs and HFCVs could be ready in time for inclusion in the 2023 edition of ADR, although reference to UN Regulations 100 and 134 could provide a short-cut, leaving only additional measures required to protect dangerous goods in the cargo. It was also noted that security measures will need to be looked at, especially during the recharging of vehicles during the transport operation. There were other questions to consider. Should the requirements for BEVs and HFCVs apply to AT vehicles? These are not covered by the requirements for various fuel systems. Should Chapter 9.2 be reorganised? It might be clearer if the provisions were separated depending on the type or category of vehicle,

 WP15 MUST NOT ONLY ADDRESS EMERGING ENERGY SOURCES IN TERMS OF ROAD CARGO BUT ALSO THE ENERGY TRANSITION AWAY FROM TRADITIONAL FUELS TO NEW MOTIVE POWER FOR HEAVY GOODS VEHICLES

including its fuel system. The cabin heater is also an issue; gaseous fuels are not permitted for EX/II and EX/III vehicles, so what happens if the cabin heater is fuelled by hydrogen? The Working Party is keen that this work continues and came up with terms of reference for future work. The informal working group is tasked with developing appropriate ADR provisions for BEVs, HFCVs and their trailers, with particular focus on their electrical equipment, the prevention of fire risks and the prevention of other risks posed by these alternative fuels. The informal working group should take full account of other regulatory developments and work in full cooperation with WP29 and other bodies. Any proposals for amendments in ADR should take into account existing UN Regulations (especially Nos 13, 100, 122 and 134) as well as data, research and voluntary standards. MISCELLANEOUS PROPOSALS Sweden had noticed that, when provisions for mobile explosives manufacturing units (MEMUs) were introduced into ADR in 2009, reference was made throughout the regulations alongside other means of containment. However, there is not mention of MEMUs in 1.8.5.4, the Model for report on occurrences during the carriage of dangerous goods. Sweden proposed that this be amended in the cell for note (3) with an additional entry at the end to read “17 MEMU”. The Working Party agreed and adopted the change. A note from the Secretariat picked up on discussions at the 108th session of WP15 on the supervision requirements in special provision S1(6) of Chapter 8.5. An oversight when harmonising RID/ADR/ADN with the 21st edition of the UN Model Regulations had left the new entries for electronic detonators (UN 0511, 0512 and 0513) out of alignment. The Secretariat proposed amending the list in the first paragraph of S1(6), changing “and 0500” to “, 0500, 0512 and 0513)”. Again, the Working Party agreed and adopted the change. The Secretariat also returned to discussions at the 107th session, where the Working Party looked at various references to ‘competent authority’ and ‘competent authorities’ in Parts 8 and 9 of ADR, and came up with some proposals for amendment while also seeking

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confirmation of the interpretations the Working Party had made. The Working Party confirmed the interpretations noted in the paper, which will be published on the ECE website. However, the Working Party did not agree with the Secretariat’s proposals for amendment, which were withdrawn. The Netherlands and Cefic had drafted some amendments to Chapter 7.1 and 9.6.1 on temperature-controlled transport, following discussions at the previous session. The proposals were presented in an informal document for consideration by WP15. Delegates were invited to make comments on the draft so that an official document could be prepared for the next session. The UK had identified what it saw as two errors in the English language version of ADR 2021. One was a simple editorial error, where figure 5.2.1.0.1.2 should be 5.2.1.10.1.2; the Working Party agreed. The second was a matter of editorial clarity in special provision S3 in Chapter 8.5. That currently reads: “The requirements of the table columns (2), (3) and (5) in 8.1.4.1 and 8.3.4 shall not apply.” This seems to suggest that there is a table in 8.3.4, which it does not have. The UK proposed changing this by replacing “and 8.3.4” with “and the requirements in 8.3.4”. Again, the Working Party agreed. Both changes have been

HCB MONTHLY | OCTOBER 2021

made as a correction to the English version of ADR 2021 and will appear in a second corrigendum. At its 108th session, the Working Party had asked the Secretariat to look into the methodology and system for assigning tunnel codes to goods of Class 7 and those for which tunnel code ‘(-)’ has been assigned. The Secretariat now provided detailed background on the development of the tunnel codes, particularly for those two areas mentioned. Part of the reason for the work was a query from Germany on the assignment of tunnel codes to excepted packages of radioactive material (UN Nos 2908 to 2911), currently shown as ‘(E)’. The Secretariat explained that, in the original development of the tunnel codes, the Working Party used as a basis the work of the Organisation for Economic Co-operation and Development (OECD) and the Permanent International Association of Road Congresses (PIARC) concerning the carriage of dangerous

 THE WORKING PARTY TIDIED UP SOME PROVISIONS FOR MOBILE EXPLOSIVES MANUFACTURING UNITS (BELOW) AND THE TRANSPORT OF EXCEPTED PACKAGES OF CLASS 7 MATERIAL IN TUNNELS

goods in tunnels. That work indicated that all goods of Class 7, other than uranium hexafluoride of UN 2977 and 2978, should be allowed in road tunnels and, by default, were assigned tunnel code E. Subsequently, it had been proposed that ‘(E)’ should be replaced by ‘(-)’ for a range of entries, including radioactive material in excepted packages. That proposal was rejected, largely on the basis that all the UN entries mentioned in the proposal are assigned to transport category 4 and thus, thanks to the exemptions in 1.1.3.6, are not subject to tunnel restrictions in any quantity. It was felt better to leave the tunnel code E in place, should transport operators wish to apply the provisions of ADR as a whole and not make use of the exemptions. Germany felt it worthwhile continuing the discussion in light of the information compiled by the Secretariat. In the meantime, the Working Party agreed to change the tunnel code for UN 2908 to 2911 from ‘(E)’ to ‘(-)’. INTERPRETATION OF ADR At the previous session, the Netherlands had provided some answers to questions that had been raised by Germany on the application of the requirements concerning the electrical equipment of vehicles in

REGULATIONS 81

accordance with the table in 9.2.1.1. The two countries now presented an official position paper. Germany had asked whether the reference to “vehicles first registered after 31 March 2018” means the registration within the meaning of road traffic law. The Netherlands was of the opinion that this is the case, while allowing that the appended text “(or which entered into service if registration is not mandatory)”, which is always added to take account that the vehicle document is only issued at the time of the first periodic inspection in some ADR states, may be open to interpretation if the background is not known. The Working Party endorsed this interpretation and requested the Secretariat to include it on the page concerning the interpretation of ADR on the ECE website. The second question was rather more complex: does the provision in the table also apply to vehicles first registered after 31 March 2018 as an ADR-certified vehicle (EX/II, EX/III, AT or FL) with a certificate of approval in accordance with Part 9 of ADR. The Netherlands

proposal differentiating between the various possible cases according to the dates of registration and any approval for the carriage of dangerous goods. Germany will work on this for the next session. Sweden sought the Working Party’s opinion on a tricky question. During the Covid-19 pandemic, when training and examinations have been difficult or impossible to arrange, two multilateral agreements had been introduced to permit ADR drivers (M333) and dangerous goods safety advisers (M334) to continue to work once their certificates had expired. Sweden asked whether, for example, a driver whose certificate was issued by a country that has not signed M333 may continue to work in a country that has signed M333, and likewise for DGSAs. Opinion was divided. The Working Party felt that, if M333 and M334 had to be re-issued after their expiry on 30 September 2021, should training sessions and examinations remain difficult to organise, then their wording should be amended to clarify the situation. However, it very much hoped that the current exceptional situation would not continue. The UK sought the Working Party’s opinion on the specification for the orange-coloured plates in 5.3.2.2.1, which in the first paragraph includes a specification that: “The plate shall not become detached from its mount in the event of 15 minutes’ engulfment in fire”. Enforcement bodies in the UK have taken the view that magnetically attached plates do not satisfy this requirement, although there is no applicable standard or test to determine whether or not a plate can withstand 15 minutes in a fire. The UK noted that there is no equivalent for the fire resistance of placards, and that the provisions relating to fire resistance do not apply to the alternative marking requirements for containers carrying dangerous solid substances in bulk and for tank containers, MEGCs and portable tanks. As per the fourth paragraph of 5.3.2.2.1, these

felt this was also correct, although it had been decided to exclude vehicles with a maximum mass of 3.5 tonnes or less, which would mostly be EX/II ‘panel vans’ where the wiring is protected by the bodywork. The Working Party was not totally convinced by this interpretation and asked for a revised

are allowed to carry an adhesive sheet or painted plate on the body of the containment. The UK wondered what was the original intention and expectation behind the fire protection requirement, whether other states had any knowledge of the technical basis behind it, and whether plates have been

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tested to withstand a 15-minute fire (and, for good measure, is that fire an intense gasoline blaze or a small fire at some remove from the plates?) The UK acknowledged that a similar provision exists in RID and the Working Party recalled that common specifications for the orange-coloured plate marking requirements had been adopted for RID, ADR and ADN in 2005. The UK’s concerns will need to be raised at the Joint Meeting to see if there are problems with the implementation of the requirements.



OTHER BUSINESS Norway and Sweden had been looking at the discrepancies between the provisions for high-consequence Class 1 explosives in Chapter 1.10 – especially those listed in Table 1.10.3.1.2 – and the additional requirement on

products on vehicles in both countries. Their joint paper noted that Chapter 1.10 was introduced into ADR in 2005 and perhaps it is time to take a closer look. There is, they said, a gap between the security obligations for transport and non-transport activities. For instance, while ADR exempts carriage in accordance with 1.1.3.6, the restrictions are more stringent for such small loads when handled at constructions sites. Sweden and Norway have now identified 206 explosives that are listed as high-consequence dangerous goods in any quantity but are still allowed for carriage in accordance with the relief provided by 1.1.3.6. Further, there are

The Working Party now confirmed the need to clarify inconsistencies between Chapter 8.5 and 1.1.3.6 in the case of goods covered by Chapter 1.10. Delegates were invited to compare the inconsistencies listed at length in the joint paper and to transmit any comments to Sweden and Norway so that proposals for amendment could be considered at the next session. The Working Party also confirmed that the list of high-consequence dangerous goods in Table 1.10.3.1.2 is taken from the UN Model Regulations; while it may be modified according to regional situations or a perceived level of threat at any given time, any proposals to amend the list would have to firstly go to the UN Sub-committee of Experts. Norway suggested it might be simpler to replace the current list in S1(6) with the list of Class 1 entries in Table 1.10.3.1.2.

supervision in special provision S1(6) in Chapter 8.5, as well as the possibility that some can be carried in accordance with 1.1.3.6, which means they do not have to comply with Chapter 1.10. The work followed recent incidents of theft and security breaches involving Class 1

discrepancies in 128 explosives when comparing Table 1.10.3.1.2 with S1(6). Their paper also noted that the UK had raised concerns about the issue in 2005 and that further questions had been raised in 2015, with large support for a revision of the Table, but for various reasons no action has taken place.

The next session of WP15 is tentatively scheduled for 8 to 12 November 2021; it is likely to have a lot on its plate if it is to finalise the amendments to ADR to take effect in 2023. Those subject to the regulations may find there are fewer changes than normal when that edition is published.

HCB MONTHLY | OCTOBER 2021

THERE IS CURRENTLY NO STANDARD BY WHICH THE FIRE RESISTANCE OF ORANGE-COLOURED PLATES CAN BE MEASURED

PLAYING CATCH-UP USA • A NEW MAN IN THE WHITE HOUSE MEANS PHMSA WILL BE KEEPING UP WITH INTERNATIONAL REGULATIONS, EVEN IF THE LATEST UPDATE WILL BE SOMEWHAT TARDY THE US PIPELINE and Hazardous Materials Safety Administration (PHMSA) published a notice of proposed rulemaking (NPRM) under docket HM-215P this past 10 August. This is its biennial update to maintain – as far as it sees fit – harmonisation with international standards and regulations. Comments on the NPRM are due by 12 October, after which PHMSA will develop its final rule. HM-215P will bring the US Hazardous Materials Regulations (HMR), found in title 49 of the Code of Federal Regulations (49 CFR), up to date with the amendments adopted in the 21st revised edition of the UN Model Regulations, which are already reflected in the 2021-22 edition of the International Civil Aviation Organisation’s (ICAO) Technical Instructions, which took effect on 1 January this year (alongside the corresponding update

HCB MONTHLY | OCTOBER 2021

to the International Air Transport Association’s (IATA) Dangerous Goods Regulations), as well as Amendment 40-20 to the International Maritime Dangerous Goods (IMDG) Code, which has been available for use since the start of this year and will become mandatory from 1 January 2022. The rulemaking will also offer some greater alignment with Canadian rules for cross-border transport activities. PHMSA had always attempted – not always successfully – to keep in step with international regulatory changes but the arrival of President Trump in the White House in 2017, along with his strict attitude to new regulation, presented it with new challenges in maintaining harmonisation between HMR on the one hand and the international air and sea rules on the other. While the change of guard in Washington this year has to a great

extent alleviated those challenges, PHMSA is still playing catch-up – although at least HM-215P has arrived somewhat more promptly than its predecessor, HM-215O, the final rule under which took effect only in May 2020. PHMSA has already issued notices of enforcement discretion to allow shippers and receivers trading internationally to use the updated ICAO Technical Instructions and IMDG Code, even though they are not yet referenced in HMR, an approach that has worked successfully in the past when HMR has got out of step. The progress towards a final rule under HM-215P will formalise the position by referencing the updated editions. THE MAIN CHANGES Although the Biden administration has taken the shackles off, PHMSA cannot somehow avoid justifying the proposals with reference to the challenges facing industry today. It mentions, for instance, that adoption of the proposed amendments will “facilitate the safe transportation of critical vaccines and other medical materials associated with response to the … Covid-19 public health emergency,” and that it will also align HMR with “anticipated increases in the volume of lithium batteries

REGULATIONS 85

transported in interstate commerce from electrification of the transportation and other economic sectors”. PHMSA also points out – although it feels like a stretch – that harmonisation with international consensus standards “could” reduce delays and interruptions during the transport chain, thus lowering greenhouse gas (GHG) emissions and also reducing “safety risks to minority, low-income, underserved, and other disadvantaged populations and communities in the vicinity of interim storage sites and transportation arteries and hubs”. The proposals begin with updates to the referenced regulations and standards, including the ICAO Technical Instructions, IMDG Code and UN Model Regulations, as well as the 2018 edition of the International Atomic Energy Agency’s (IAEA) Regulations for the Safe Transport of Radioactive Material (SSR-6), several new or updated standards published by the International Organisation for Standardisation (ISO) and the revised version of the Organisation for Economic Cooperation and Development’s (OECD) Test No 431 on in vitro skin corrosion. Closer to home, PHMSA is also proposing amendments that would allow motor carriers and rail operators to use a temporary certificate issued under Transport Canada’s Transportation of Dangerous Goods (TDG) Regulations within the US. Other proposed changes emanate mainly from the UN Model Regulations and mirror those that appear in the latest revisions of the ICAO Technical Instructions and IMDG Code. These include, but are not limited to: • Various changes to the Hazardous Materials Table (HMT) • Exceptions for data loggers and similar equipment (with a note that also applies to air transport for the movement of Covid-19 pharmaceuticals and vaccines) • The removal of wall thickness requirements for metal intermediate bulk containers (IBCs) with a capacity of 1,500 litres or less

 A CHANGE OF POLITICAL ADMINISTRATION SHOULD HELP PHMSA KEEP MORE IN LINE WITH INTERNATIONAL REGULATORY DEVELOPMENTS

• Permission to transport stabilised fishmeal or fish scrap (UN 2216) on passenger aircraft, along with expansion of the existing stabilisation requirements when these materials are shipped by vessel • The new UN 3549 entry for solid medical waste of Category A, with the assignment of Special Provision 131 and amendments to the definitions and exceptions for Division 6.2 hazardous materials • Additional packaging options for UN 2211 polymeric beads and UN 3314 plastic moulding compound • Various revisions to the requirements for the transport of lithium batteries, including the size of marks and stowage requirements, including those for damaged/defective or for disposal/recycling • Amendments to the definitions for selfaccelerating decomposition temperature (SADT) and self-accelerating polymerising temperature (SAPT) • Extended inspection periods for cylinders with materials assigned to UN 3500 chemicals under pressure, nos, that are also used as fire extinguishing agents • Greater flexibility in the documentation and marking requirements for marine pollutants • A new stability test requirement for nitrocellulose. SAVE IT FOR LATER Perhaps of keener interest for international shippers are those areas where PHMSA has chosen to vary from the UN provisions, which it does either because the requirements are

already covered in HMR, it does not see the value in the latest amendments, or it will manage the specific issues in another way. Such is the case with the new UN 3549 entry for solid medical waste, Category A. While PHMSA is proposing to adopt the entry, it does not plan to incorporate the corresponding packaging instructions. Rather, it plans to continue to approve the packaging and transport of these materials through a special permit. “Maintaining approval of these shipments under a special permit allows for oversight of the grantees in that PHMSA can conduct a fitness evaluation prior to granting a special permit and data on the number of shipments made under a special permit are provided to PHMSA,” it says. The revision to Special Provision A201 in the latest ICAO Technical Instructions, which provides for the transport of lithium batteries on a passenger aircraft with the prior approval of the state of origin and the operator, provided the batteries are intended for urgent medical need, has similarly not been picked up by PHMSA. An interim final rule under HM-224I published in March 2019 in response to a Federal Aviation Administration (FAA) mandate provides similar provisions. A final rule covering the issue is already under development. Likewise, while PHMSA has proposed referencing the latest IAEA SSR-6 in HMR, its provisions are not part of this amendment. Instead, PHMSA plans to address domestic radioactive harmonisation issues in a separate rulemaking, HM-250A, which it is

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developing in coordination with the Nuclear Regulatory Commission.



ALREADY COVERED There are two further points on which PHMSA proposes to vary from the 21st revised edition of the UN Model Regulations. The first of these concerns an amendment to the general requirements permitting the use of the proper shipping name ‘Articles containing dangerous goods, n.o.s’. Specifically, this amendment authorises the use of this entry for articles containing explosives if the article is excluded from Class 1 by meeting certain exclusion criteria identified in section 2.1.3.6.4 of the UN Model Regulations. PHMSA does not permit shippers to self-exclude a potential explosive article from

excluded from Class 1, a document would be issued by PHMSA that indicates it is not an explosive but must be classified based on any other hazard presented by the article. In this case, the shipper would be required to choose the most appropriate proper shipping name, which could include the appropriate ‘Articles, n.o.s.’ entry. Finally, the UN has adopted amendments to Packing Instruction P801 relating to used batteries assigned to UN Nos 2794, 2795 and 3028; these amendments were designed to

requirements in §173.159 of HMR for such batteries offer an adequate level of protection. PHMSA does not believe there is a safety justification to limit the transport of used batteries to those packaged in accordance with the new UN packing instruction requirements in P801 or to add these stainless steel boxes or plastic bins to the current packaging authorisations in HMR. There will doubtless be plenty of comments on the NPRM – indeed, speaking recently during Labelmaster’s DG Symposium PHMSA’s Shane Kelley specifically urged dutyholders to submit them – and it may well be the case that further changes are made before the final rule is issued, hopefully before the end of the year. HCB will inform readers of any subsequent alterations and the planned

Class 1. Rather, it requires shippers to submit explosives to PHMSA-approved explosives test laboratories, which perform evaluations to determine whether the explosive meets the exclusion criteria and then recommend a classification to PHMSA for explosives submitted to them for review. If an article is

correct issues pertaining to requirements unique to the UN Model Regulations for the use of stainless steel boxes and plastic bins as packaging for those used batteries. In contrast, PHMSA does not specify such packagings for used UN 2794/2795/3028 batteries, feeling that the existing packaging

entry-into-force date of the amendments. Meanwhile, the full text of the NPRM can be found in the Federal Register online at www.federalregister.gov/documents/ 2021/08/10/2021-15425/hazardousmaterials-harmonization-with-internationalstandards.

PHMSA WANTS TO KEEP STRICT CONTROL OVER THE PACKAGING OF SOLID MEDICAL WASTE AND IS NOT

HCB MONTHLY | OCTOBER 2021

FOLLOWING GLOBAL RULES IN THIS INSTANCE

REGULATIONS 87

TAKING FLIGHT

The packing options in Section II have been deleted as there is only one option available. Elsewhere in the new edition, in the List of Dangerous Goods in 4.2, the entry for tert-Amylperoxy-3,5,5-trimethylhexanoate is amended to show it under UN 3105 Organic peroxide, Type D, Liquid, rather than ‘forbidden’. Special Provision A2 is deleted from UN 3094 Corrosive liquid, water reactive, nos. And the entry ‘Fuel system components’ has been revised to include references to ‘Dangerous goods in articles’. There are some changes in Section 10 relating to radionuclides not listed in Table 10.3.A. In both 8.1.6.5.3 and 10.8.3.5.2, the text on the removal of the Cargo Aircraft Only label has been revised to include “or obliterated” after “removed”, to provide flexibility. In 7.1.4.6, the text has been revised to clarify the applicability of ‘All Packed in One’ to two or more different dangerous goods.

THE INTERNATIONAL AIR Transport Association (IATA) has published the 63rd edition of its Dangerous Goods Regulations (DGR), which take effect promptly – with one exception – on 1 January 2022. IATA updates its DGR every year, unlike the other modal regulations, and this edition falls between the biennial publication of the International Civil Aviation Organisation’s (ICAO) Technical Instructions, on which it is based. However, IATA has taken the opportunity to adopt a number of safety-critical amendments, while also taking note of addenda issued by ICAO to its current, 2021-2022 edition of the Technical Instructions. IATA has, as usual, issued a brief list of the major changes. It stresses that these are

In particular, Section II is removed from packing instructions PI 965 and PI 968; batteries formerly shipped as Section II will henceforth need to be shipped in accordance with Section IB. To give shippers time to adapt their logistics process, there is a three-month transitional period to 31 March 2022. As a consequence of that change, there are also amendments in 1.6.1, Special Provision A334, 7.1.5.5.1, Table 9.1A and Table 9.5A. Packing instructions PI 966 and PI 969 have been revised to clarify the packing options for Section I cells and batteries, which are: • Packed in a UN-specification packaging then placed with the equipment in a strong rigid outer packaging, or

LOOKING AHEAD A new Appendix I is added to this edition of DGR to provide advance notice of amendments already adopted by ICAO’s Dangerous Goods Panel for inclusion in its 2023-2024 edition of the Technical Instructions, some of which are drawn from the 22nd revised edition of the UN Model Regulations. As usual, the annual update contains several amendments and additions to the list of state variations, updated contact details for competent authorities, and changes to the lists of UN specification packaging suppliers, package testing facilities, sales agents, and accredited training schools and training centres. Another significant change appears in Appendix H, where the guidance material on development and implementation of competency-based training for dangerous goods has been revised based on engagement

not exhaustive and dutyholders will need to check the new edition carefully to see if they are affected.

• Packed with the equipment in a UNspecification packaging.

with, and input from training providers and member airlines.



IATA CHANGES The most significant changes included in the 63rd edition of DGR apply to lithium batteries.

SHIPPERS OF LITHIUM BATTERIES WILL NEED TO

The 2022 IATA DGR can be ordered directly or through the usual sales agents. More information can be found at www.iata.org/en/ publications/dgr/.

AIR • JANUARY IS COMING SOON AND WITH IT THE LATEST UPDATE TO THE IATA DG REGULATIONS. WHAT CAN DUTYHOLDERS EXPECT THIS TIME AROUND?

CHECK THE AMENDMENTS CLOSELY AS THERE ARE SOME IMPORTANT CHANGES

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88 BACK PAGE

NOT OTHERWISE SPECIFIED READ THE LABEL Dangerous goods trainers around the world quite rightly stress the importance of putting the right information on packages of dangerous goods: accurate hazard communication is vital if accidents are to be dealt with promptly and safely. In addition, anyone using dangerous goods in any application needs to know what it is they are handling. Getting hazard communication wrong can have serious consequence, as the municipal water supply operator at New Baltimore, Michigan, very nearly found out this past July. The water for the 14,000 residents of the town is treated with fluoride to promote goods dental health, as it is in many parts of the world, and for years PVS Chemicals has been supplying New Baltimore with 55-gallon steel drums with a fluoride solution. On this occasion, a worker opened a pump to transfer the contents of a drum into the day tank when there was “a pretty substantial reaction,” according to Chris Hiltunen, superintendent of the water treatment plant. Rather sensibly, the operator shut down the pump and left the room. On investigation, it was found that four drums labelled as containing fluoride actually contained 93 per cent sulphuric acid. “It was the most aggressive thing I had ever seen chemical-wise,” Hiltunen told Fox News. He and his crew isolated all

staffing at its facility as a result of Covid-19 restrictions.

the valves, shut the tank off and isolated the room. For its part PVS Chemicals says it accounted for all the drums involved and was sure that there are no further mislabelled drums at the New Baltimore plant or at any other customer sites. It said this was an isolated incident and blamed under-

and got his own back by chewing it. The snake wasn’t going to take this lightly and bit the man again, more than ten times on the face. The man’s family wanted to take him straight to hospital but he refused, saying it was only a baby and would not harm him. However, 12 hours later he died of the poison.

HCB MONTHLY | OCTOBER 2021

UNDERSTAND THE LABEL Even when dangerous goods are properly labelled, it is still important to read the labels and be able to understand them. A plumber was injured in Taranaki, New Zealand in August while trying to clear a blocked sink and shower. A shopowner had already tried to do the job with a drain cleaner, based on sulphuric acid, but when he failed he called in assistance. Unfortunately, the plumber he called was either ignorant of the earlier attempt or did not stop to consider the implications of what he was about to do – to add a completely different drain cleaner. As we are often told, it is never a good idea to mix different chemicals and the two solutions used reacted aggressively. The resulting fumes injured the plumber and led to fire crews from three towns arriving, some of them wearing level 4 gas suits. The fire crew had to call Australia to figure out how to neutralise the mixture. SNAKES ALIVE – OR NOT Finally, here’s another story to put the frighteners on happy drinkers. A man died in Bihar, India in August after being bitten by a snake. It was not the first bite that did it but, being drunk and somewhat out of control, the man grabbed the snake – a young krait –

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HCB Magazine October 2021

Articles inside

What the supply chain members think

Caroline Ciuciu reimagines the future

Interview with Dirk Verstraeten