CHEMICAL TANKER DEMAND
OVERTAKES SUPPLY
PACKAGING ADDRESSES CIRCULARITY
KEEPING TANKS CLEAN AND WORKING
TERMINALS READY FOR TRANSITION
As one of the world‘s leading logistics services providers in handling and transporting liquid products, we are the first point of contact for the chemicals, gas, mineral oil and foodstuffs industries. By road, rail and sea, from road tankers to IBCs, from equipment leasing to intelligently networked Smart Tanks, we will find the optimum solution for you.
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When I first entered the door in Tavistock Street and took up my desk at HCB, almost 30 years ago now (how time flies when you’re having fun!), I had been engaged primarily to write about the bulk marine business of moving chemicals and gases. At that time, the industry was in pretty poor shape and was coming under increasing pressure to take action to put a halt to the seemingly endless litany of oil spills.
I arrived not that long after the Exxon Valdez ‘disaster’ in Alaska; the spill was not all that large by the standards of the day and there was plenty of evidence that the cleanup operation had caused at least as much environmental damage as the oil spill itself. Still, pictures of oiled seabirds flashed around the world’s news outlets and the message was clear: tanker shipping was bad for the environment. (There are echoes here in the rather disproportionate response to the derailment earlier this year in East Palestine, Ohio, which as far as we know caused no deaths or serious injuries but managed to catch the attention of the news channels.)
The promulgation of the Oil Pollution Act of 1990 (OPA 90) in the US in the aftermath of the Exxon Valdez incident did little in the short term to stem the tide, though it did make the idea of double hulls for tankers a safety benchmark, despite safety concerns at the time. The loss of Khark 5 in the Atlantic followed swiftly after, then there was Mega Borg, Haven, Katina P, Braer, Sea Empress, Erika and so many, many more. Each time, there was a public uproar and a lot of talk about
tightening regulations so that this sort of thing could not happen again. But it did.
Following on from OPA 90, tougher action by port state control regimes, the arrival of the SIRE and CDI tanker inspection schemes and a shift in the attitudes of (some of) the major charterers did have an effect, as shown by ISU’s salvage data.
But I fear now that all that progress is being undermined by conflict. Since Russia’s invasion of Ukraine, most countries aligned with the ‘west’ have put in place embargoes against trading with Russia. But with Russia being a major exporter of oil and gas, there are plenty of countries in the non-aligned camp that are only too happy to continue doing business with Moscow. The result of that is that there is now a growing ‘grey’ or ‘dark’ fleet of tankers, often at the older end of the age range, moving around the world with their AIS turned off.
Clearly, there is enough business for this dark fleet, especially when it can also take advantage of demand from those countries already under embargoes (usually at the instigation of the US), such as Iran, Venezuela and Cuba. But who knows what condition these ships are in – and are they even insured?
It is hard to know what to do about it but the lesson is clear: if too much of the world is under embargo, a parallel trading world exists and it has little interest in matching up to the environmental standards of the west. It will be interesting to see what happens when – as seems inevitable – there is another oil spill.
Peter Mackay
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REGULATORY HARMONISATION WAS very much in the air thirty years ago, not least since the deadline for European Community member states to apply ADR to domestic as well as international transport was approaching fast. But, as the pages of the June 1993 issue of HCB revealed, there was still plenty of disharmony around.
For instance, the UK had based its own domestic regulations on the UN Model Regulations but, at that time, ADR was still some way off aligning with the UN and the UK found itself having to do more work than other states to amend its own provisions. The UK was to take advantage of the provision in the ADR Agreement for states to put in place derogations when deemed necessary, particularly as regards the continuing use of the Emergency Action Code on the orange-coloured plates rather than the Hazchem codes used in ADR.
Dr Norbert Müller, who was then risk prevention officer at Thyssen Haniel Logistic, explained a significant derogation from ADR in Germany, which could easily be overlooked; this was found in Appendix B.8 of the German road transport regulations, GGVS, and applied not only to domestic transport but also to international traffic moving into, out of or through the Federal Republic. Appendix B.8 contained two lists, one identifying 248 very dangerous substances and articles, whose carriage in excess of specified limits was restricted to rail and inland waterway; the second list included 12 substances (including, of interest to today’s market, hydrogen) that were route-restricted. In effect, what this meant was that any consignment involving List I substances arriving at the German border would have to switch from
road to rail or inland waterway. This had drawn criticism from other states, which felt that the requirement was inconsistent with ADR and also with the contract establishing the Single European Market, mainly on the basis that the choice of the 248 substances and articles in List I seemed to be arbitrary.
Meanwhile, France had set up a special council to review domestic controls on the transport of dangerous goods, partly in response to an incident in January 1993 at a railfreight yard in the Rhône valley in which six 80,000-litre petroleum tank cars derailed on a defective piece of track; three of them caught fire and, while there was no loss of life, burning gasoline flowed into the sewers causing considerable damage to nearby homes.
France’s Transport Ministry discovered to its chagrin that SNCF, the French rail operator, had no formal dangerous goods training for its personnel, other than for those involved in handling radioactive material, and was therefore ill-prepared to deal with incidents such as these. That was despite the fact that it was transporting some 20m tonnes of dangerous goods every year, around 80 per cent of which fell under Class 3. IMO was also struggling, specifically with the proposed liability convention for the carriage of hazardous and noxious substances (HNS) by sea. Drafting work had already taken years but IMO’s Legal Committee, which discussed the draft convention in March 1989, identified several problems that were proving intractable. It had been hoped to adopt a final text in 1994 but it now seemed 1997 was a more likely target – 26 years later we still await that final text.
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• Information deficit (shortage) = Entropy (disorder) (by definition)
• The law of Requisite Variety (Ashby’s Law)
• Functionality of dynamic, living systems (terminals) depend on the quality and quantity of information (feedback).
Marine storage terminals and refineries that fail to effectively implement information process and internal control systems are likely to face an information deficit at some stage, resulting in degraded performance. Understanding how information deficits result in entropy or disorder is critical if you want to operate an effective and safe business.
We train people how to detect potential information deficit (shortage) and predict vulnerability. Accessing the quantity and quality of information is needed to verify the potential level of exposure to risk by scientific method.
We have tested this warning methodology worldwide successfully. Terminal managers, supervisors and staff can be instructed and trained how to work with this systemic approach to understand possible information gaps by applying the Law of Requisite Variety, as follows:
• A situation can only be controlled if the variety of the controller matches the variety of the situation to be controlled
• Requisite Variety is the capacity of a living system, including an organisation and society, to respond to risk
• A storage terminal generates tremendous variety and tries to control it in its own way through checklists, regulations and laws
• If variety is not matched, systems will spin out of control (entropy or disorder)
• It is impossible to control for every variable so most variety is absorbed through relationships with other systems
• It means that, in risk management, only enough variety in a system can absorb or control risks originating from outside variety
• By using feedback, this information is fed into the system to allow the system to adjust and learn constantly
• It is impossible to control all risks as systems fluctuate by information from constantly changing variety in a non-linear environment. Information reduces uncertainty
• Human variety, environmental variety, social variety, regulatory variety change all the time and thus can only be governed by the use of real-time feedback (information).
Each living system needs to maintain and develop an internal requisite variety to be able to absorb ‘outside’ variety. This means having the people with the combined knowledge, experience, expertise, influence, equipment, tools, etc. to do so, using all relevant information as attenuators, to damp variety and variety generators to build variety. Health and safety improvement is created by adding variety in the form of personal protective equipment (PPE), gas detectors, etc – i.e by information. Ethics and corporate social responsibility are requisites that work as information feedback loops and are risk attenuators. The Automation Paradox: when demand increases enough in response to lower prices, employment goes up with automation, not down.
This is the latest in a monthly series of articles by Arend van Campen, founder of TankTerminalTraining, who can be contacted at arendvc@ tankterminaltraining.com. More information on the company’s activities can be found at www.tankterminaltraining.com.
FLEET • AN UNUSUAL ALIGNMENT OF MARKET CONDITIONS HAVE PUSHED UP FREIGHT RATES IN THE CHEMICAL TANKER SECTOR BUT OPERATORS ARE STRUGGLING TO GROW THEIR FLEETS
TODAY’S CHEMICAL TANKER market is unusual. Freight rates are very high at present, and staying firm as the year unfolds. Demand for chemical tanker capacity, certainly in tonne-mile terms, is strong and the improved product tanker market has tempted swing tonnage back into the clean products sector.
Historically, conditions such as these would be a signal for investment in new tonnage in the chemical sector. Attracting capital does not seem to be a problem and borrowing is still relatively cheap in real terms. Furthermore, the outlook seems strong too: chemical tankers will have a role to play in the energy transition, both in the supply of raw materials and in the transport of new cargoes
such as liquid organic hydrogen carriers (LOHCs), as well as methanol and biofuels. Finding yard space is a little more difficult, with many of those shipbuilders who would typically be in the market for chemical newbuildings already busy with containerships and LNG carriers. As a result, those slots that are available carry something of a premium. Nonetheless, it would seem that the current supply/demand balance, allied to an optimistic medium-term outlook, would support investment in new chemical tanker construction.
That this is not the case has little to do with market fundamentals, however. The International Maritime Organisation (IMO), as an agency of the UN, is taking seriously its
remit to promote and implement the UN Sustainable Development Goals. As part of that, it is looking at ways to keep the seas cleaner than they now are but also to look at ways in which the carbon emissions from maritime activities can be reduced.
Already IMO has introduced new limits on sulphur oxide emissions from smokestacks, which caused a major shift in refinery activity, not least since refiners had been using bunker fuels as a sulphur sink for decades; this action also opened up a new market for exhaust scrubbers. IMO has also brought in new ways to measure vessel efficiency and fuel economy, which have not always worked well in the chemical tanker sector but are encouraging slow steaming – which effectively reduces overall fleet capacity.
The EU has also included shipping in its Emissions Trading System, which will come into effect next year and, over the course of three years, progressively increase the proportion of emissions covered by the scheme. Odfjell says that it will pass on this cost to its charterers, which will encourage them to prioritise energy- and emission-
efficient alternatives for the transport of their products, which suggests that the scheme may meet its aim of altering some behaviour patterns.
IMO is now considering where to go next in the quest for a carbon-neutral shipping industry – and this is discouraging investment in new tonnage. Chemical tankers can – and often do – last a long time; tankers equipped with stainless steel tanks last the longest, and not just because their tanks do not corrode; they are pricier to begin with than coated tonnage, which makes it more cost-effective to look after them properly. Even the major chemical tanker specialists have ships on their books that are over 25 years old.
That means that any new ships ordered today, which will probably not be delivered until 2025 at the earliest, will probably still be operating in 2050 and will likely need to meet incrementally stringent emissions reductions targets. It is difficult for vessel owners to justify the significant costs of building new ships when they cannot be sure of the long-term viability of those ships.
Uncertainties over the future course of emissions reduction measures by IMO have therefore had something of a dampening impact on newbuilding activity. According to Stolt-Nielsen, the chemical tanker orderbook stands at some 5.4 per cent of the active fleet, a historically low level; the company also expects demolition activity to pick up and, indeed, to outstrip deliveries of new tonnage in 2025.
These signs are good for operators. Stolt-Nielsen notes that its return on capital employed (ROCE) for 2022 was 11 per cent, around double its 20-year historical average. If that level of return could be guaranteed, it might support some speculative ordering, although over the long term owners need to achieve returns in excess of the cost of capital.
Stolt Tankers reported revenues of $415.5m for its first fiscal quarter of this year, to end February, representing a slight increase over the previous period. As the company had signalled in its 2022 year-end figures, strong
demand for contract of affreightment (COA) renewals, particularly in the deepsea sector, boosted freight revenues. The company reports that COA rates were up by 16.3 per cent, though volumes were slightly down as it continued to take a firm stance on renewals. Spot volumes increased as a result, though rates in the spot market dropped by 6.2 per cent.
First quarter operating profit came in at $87.1m, up from $78.2m in the fourth quarter 2022 and $25.0m in the first quarter 2022, reflecting the improvement in deepsea freight revenue. Bunker prices continued to fall, though this was partly offset by a drop in bunker surcharge income as well as by higher port charges.
“The average rate increase on contract renewals by Stolt Tankers in the first quarter was approximately 50 per cent, a significant improvement over the fourth quarter’s 30 per cent rate increase,” says Niels G StoltNielsen, CEO of parent company Stolt-Nielsen Ltd. “In pushing hard for improved terms, a number of contracts were not renewed, but we continue to see most of those contract volumes resurface in the spot market, where we have been able to fix at higher rates –negotiations continue. With a continued favourable supply/demand balance expected in the chemical tanker markets during the coming years we should see continued firmness in our segment.”
Odfjell Tankers likewise reports that 2023 started with the same firm market trends that characterised the latter half of 2022.
Timecharter equivalent earnings for the first quarter came in at $30.8m, slightly down on the $31.7m recorded in the fourth quarter of 2022 but well ahead of the year-earlier figure of $22.4m. Volumes carried increased again, despite a lower number of revenue days.
With strong rates in the product tanker sector, swing tonnage was kept out of the chemical markets, which were supported by
longer trading distances as a result of the displacement of Russian product.
During the quarter, Odfjell took delivery of one newbuilding on timecharter and concluded orders for two 26,000-dwt stainless steel ships for delivery in first half 2026. It also declared purchase options on two vessels on charter, Pacific Endeavor (now Bow Endeavor) and Bow Capricorn, which has been on bareboat charter. Odfjell sold one of its older ships, the 2004-built Bow Santos, at the end of the quarter for delivery at the end of this month.
Given the current market situation, with very strong demand for chemical tanker capacity at the same time as a lack of any significant increase in capacity in the short term, it is not surprising that freight rates are high. But there are still plenty of investors looking to tap the rewards available at present. That has prompted a surge in secondhand values, with broker Clarkson recently estimating that prices for five-year-old tankers are around 95 per cent of the cost of a newbuilding – if only space could be found for newbuildings. In some markets, secondhand ships are attracting a premium over newbuilding prices, so eager are investors to get in on the action. One way to get secondhand ships to start earning quickly is to enter them into a pool and it is noticeable that some of the major operators in that business, such as Womar, have seen a lot of action with vessels coming in and out of their pools. On the other hand, Odfjell has sharply reduced the number of pools it operates, preferring to keep the earnings for itself.
For all those reasons, there have been a lot of changes to the fleet list this year, which appears on the following two pages. As ever, it should be noted that there is a substantial amount of double-counting of individual ships, so the sum of all the fleets will not give an accurate account of the global chemical tanker fleet. Some vessels will have been counted in their owner’s fleet, in a manager’s fleet and possibly in a pool fleet as well. Furthermore, the tables do not include owners with just one or two ships, and tend to ignore
domestic fleets of very small tankers in China, Japan and, to some extent, South Korea. There is also the question of where to draw the line between pure chemical tankers and those product/chemical carriers that meet IMO II specifications, which are generally of the ‘MR’ size of around 50,000 dwt. At present, most of those product/chemical carriers, which represent the bulk of the swing tonnage that can work in both clean petroleum products and easy chemicals, will be engaged in the product trades, since freight rates in that sector are also firm and working in petroleum presents fewer challenges than chemicals. However, were the product tanker market to collapse, many might find themselves touting for business in the chemical or vegoil trades.
The simplest way to find the ‘core’ chemical tanker fleet is to look at cargo tank construction, as those vessels with stainless
steel tanks are simply too expensive to bother with the petroleum trades. A quick scan of the largest stainless steel fleets shows that the leading chemical tanker operators are still MOL Chemical Tankers, Odfjell and Stolt Tankers (although the latter does not give an exact indication of its stainless steel tankage). Coming up quickly, though, are Fairfield Chemical Carriers, which has recently taken delivery of a number of newbuildings and has more still to come, Hansa Tankers and MT Marine. Womar also has a growing stainless fleet in its dedicated pool.
Another fleet to watch is Denmark-based Uni-Tankers, which has recently announced moves into larger ships; while it does have some stainless steel tankage, its core fleet is MarineLine coated. Its compatriot Christiania Shipping, which operates the former Herning fleet, is also on a growth path, again focusing primarily on MarineLine-coated vessels.
Demonstration is inhere the employees of the technical department of GEFO in front of M/T “Traviata” after the new classification. Slim high-rising bow, bow bulge like a whale to reduce fuel consumption and reduce exhaust gases, 14 stainless steel tanks.
One tanker of the fleet of 150 tankers belonging to GEFO.
(a) not updated in this year's list (b) international fleet only (c) Teflon
been tested and optimised to reduce the required draught and weight. By using two rudder propellors with comparatively small dimensions, HGK Shipping has managed to achieve outstanding load capacity and ideal shallow-water operations. As a result, the two sister vessels are able to carry a load weighing 160 tonnes in a draught of just 1.00 metre and still be fully operational and manoeuvrable. The hulls were built by Severnav in Romania and HGK Shipping’s turnkey partner, the De Gerlien van Tiem shipyard in the Netherlands, fitted the ships out and made them ready for service.
In addition to the low-water performance the design offers, the new tanker vessels are setting new standards in terms of sustainability. They are equipped with highly efficient diesel-electric drive systems, which reduce CO2 emissions by up to 30 per cent compared to conventional vessels of a similar size that are currently in service. Emissions of particulate matter and other polluting substances have also been significantly reduced.
All the new vessels introduced by HGK Shipping during the last two years have also been planned and completed so that they can use future fuels or H2 and these latest arrivals are no exception. The hulls are designed with two empty areas or void spaces, which can be equipped with storage solutions and the necessary technology for using alternative energy sources at a later date.
IN EARLY MAY, HGK Shipping held a naming ceremony for its latest newbuildings, Courage and Curiosity, which are now working for charterer Covestro on the Rhine network. The two sisterships, designed by HGK’s own ship design centre, represent the pinnacle of the fleet’s recent development and are another indication that the company continues to pursue its strategy of providing forward-looking and tailor-made vessels for its customers.
“We want to create sustainable and reliable transport chains in conjunction with our customers,” explains Norbert Meixner, business unit director, liquid chemicals at
HGK Shipping. “The Courage and Curiosity are enabling us to take a huge leap forward in this respect. Thanks to the vessels’ design, which allows us to use different drive systems, we’ve set another milestone for inland waterway services, but also in our role as a partner for industry in the joint battle against greenhouse gas emissions.”
The two inland tank barges are, HGK says, among the most modern and innovative vessels afloat. The hulls of the shallow-water vessels, which are 93 metres long and 10.5 metres wide, have a very bulky and lightweight design with an unusual stern and bow shape. All the components installed on board have
Such considerations are of great importance to charterers, especially in the chemical world. “We’re not only able to organise our supply chains on the river Rhine in a more reliable way with the two new vessels, but already make them more sustainable too,” says Dr Uwe Arndt, head of logistics, EMLA at Covestro. “When we re-equip them to use renewable energy sources in future, we can take an important step along the road towards climate neutrality and the circular economy. We’re looking forward to continuing to follow this course together with HGK.”
www.hgk.de
INLAND SHIPPING • COVESTRO IS ALREADY TAKING ADVANTAGE OF THE SUSTAINABILITY AND PERFORMANCE IMPROVEMENTS PROVIDED BY HGK SHIPPING’S LATEST NEWBUILDINGS
The two partners plan to develop the demonstration vessel by 2028; the challenges are less in the cargo containment and handling area but more in the way hydrogen will be released from the carrier to power the fuel cells that will drive the ship. This means having a dehydrogenation unit onboard, again using technology already developed by Hydrogenious LOHC.
THE CONUNDRUM FACING those who are pushing forward the energy transition is how best to move hydrogen from its point of renewable production to its end users. One thing is clear: moving hydrogen in bulk is going to be expensive and technically challenging, with safety issues that will need to be addressed.
There are, though, alternatives, which each involve further processes at both ends of the supply chain. And as long as these are also powered by renewable energy, and the means of transport are likewise decarbonised, the material delivered to the user is carbonneutral. Ammonia is a clear front-runner as a carrier for hydrogen, with an already well established supply network, but it too has some safety issues. Others are looking at reusable vectors in the form of liquid organic hydrogen carriers (LOHCs).
One of those, Hydrogenious LOHC – which has the backing and support of Vopak – has recently signed a memorandum of understanding with HGK Shipping, one of Europe’s leading inland waterway operators, with the goal of developing a scalable solution to use LOHCs to help make hydrogen available as a source of energy on a large scale. The Hydrogenious LOHC technology uses benzyl toluene as a carrier, which is relatively safe to handle and can be transported and stored at ambient pressures and temperatures.
Fundamental to the project will be the availability of suitable shipping capacity and the two companies plan to embark on a development project, ‘HyBarge’, next year,
leveraging the experience of using fuel cells fed by hydrogen released from LOHCs in other shipping and onshore applications.
“We want to successfully introduce the maritime LOHC drive technology to the especially high safety requirements of inland waterway shipping within the HyBarge project,” says Øystein Skår, general manager of Hydrogenious LOHC Maritime. “HGK Shipping will be the ideal partner in this respect. We’ll also use the expertise that we’ve gained during the last two years in developing LOHC powertrains for commissioning/service operation vessels.” Dr Daniel Teichmann, founder of Hydrogenious LOHC, adds: “Decarbonised mobility solutions and transport operations along the sensitive network of rivers in Europe can become reality using existing infrastructure, thanks to our safe LOHC technology.”
“Introducing the demonstration vessel could be more than just a milestone in achieving climate-neutral inland waterway shipping –the same could be true for industry, which will depend on energy sources such as hydrogen to decarbonise its operations,” says Steffen Bauer, CEO of HGK Shipping. “Hydrogenious’ LOHC technology has enormous potential for use, particularly when compared to other hydrogen derivatives. However, what is more important is that it doesn’t need any special tank technology, with the result that this LOHC can be made available within the existing infrastructure both on land and on the water.”
The use of an LOHC such as benzyl toluene also contributes to the circular economy. The oil is loaded with hydrogen at a point where renewable energy is available, then shipped to the user where the hydrogen is stripped from the carrier by dehydrogenation; the ‘discharged’ carrier material can then be returned to the initial point to be used again, something that can be done several hundred times.
www.hydrogenious.net
www.hgk.de
LOHC SHIPPING • HGK SHIPPING IS TEAMING UP WITH HYDROGENIOUS LOHC TO ESTABLISH A SUPPLY CHAIN AT SCALE TO FEED HYDROGEN ACROSS EUROPE BY INLAND WATERWAY VESSEL
Uni-Tankers has announced what it calls a “major expansion” of its stainless steel chemical tanker fleet, which will add five modern ships to its fleet. Firstly, it will take ownership of the 12,500-dwt Marex Noa, which it has had on timecharter; two sisterships will be built for the same owner in Japan for 2024/2025 and placed on long-term timecharter with Uni-Tankers.
In addition, Uni-Tankers has contracted long-term charters with a Norwegian owner for two 19,990-dwt, 2016/17-built chemical tankers; they will be delivered into the Uni-Tankers fleet in the summer and renamed Swan Atlantic and Swan Pacific.
“We are excited to announce this significant expansion of our stainless-steel fleet,” says Per Ekmann, CEO of Uni-Tankers. “With these new vessels, we will be able to provide even greater service to our clients around the world.” uni-tankers.com
Tristar Group and Norstar Group have formed a new joint venture, Norstar Chartering Services, to charter and commercially operate chemical and clean product tankers. The new company is headquartered in Dubai with regional offices in the US and Singapore; Olav Ekeberg, a partner in Norstar, has been appointed CEO.
Both partners in the joint venture already have a presence in the liquids shipping business. Eugene Mayne, CEO of Tristar, says: “This latest business decision will strengthen the group’s maritime logistics division which owns and/or operates more than 30 chemical, oil, and gas tankers and bulk carriers trading globally, mostly with energy majors.”
“Norstar specialises in chemical and product tankers and the transport of high-risk cargoes,” adds Chris Bonehill, co-owner of Norstar Group. “Tristar Group, as a leading global
energy logistics service provider, is a great strategic partner for Norstar to grow its existing business and potentially expand into other energy transition midstream activities. Both our companies and our customers will benefit significantly from the joint venture.” www.norstarshipping.com www.tristar-group.co
Purus Marine has ordered four 45,000-m3 LPG carriers from Hyundai Mipo for delivery in 2025 and 2026, with options on two further ships. The scrubber-fitted newbuildings will be dual-fuel ammonia-ready and, the company says, will primarily be used to carry ammonia to supplement the company’s focus on low-carbon maritime transport and infrastructure systems.
Purus Marine was established in 2020 with funds from EnTrust Global and has built up a fleet of more than 60 vessels in the gas shipping, containerships and offshore wind farm support sectors. purusmarine.com
Toro Corp, established in 2021 as a tanker spin-off from dry bulk and containership owner Castor Maritime, has entered the LPG market for the first time with the acquisition of four 5,000-m3 Japanese-built vessels, three built in 2015 and one in 2020. Toro is due to take delivery in the second and third quarters of this year and will finance the $70.7m deal with cash on hand.
“We are very excited to announce our entry into the LPG shipping market in our first transaction as a newly independent company,” says CEO Petros Panagiotidis. “The en bloc acquisition of four LPG vessels will create a diversified fleet of tankers and LPG vessels, strengthening our position in the energy transportation business and building further our exposure in the shipping industry. We believe that the fundamentals of the LPG shipping sector are attractive with positive future prospects. We intend to continue looking for further opportunities to renew, grow and diversify our fleet with the addition of
high-quality tonnage.”
www.torocorp.com
Maersk Tankers is building on its in-house expertise to offer a new voyage management service to shipowners, which aims to deliver greater economic and environmental efficiency in day-to-day operations.
Petredec Global, recently carved out of Petredec to operate the group’s LPG tankers, is the first company to sign up to the service. Tom Lush, head of commercial shipping at Petredec Global, explains why: “It is not through technological advances alone that the industry’s environmental goals will be achieved. Collaboration and leveraging the expertise of other leaders in the industry will be key. We welcome this partnership with Maersk Tankers as an example of this.”
Maersk Tankers will initially take over the voyage management of seven of Petredec Global’s owned LPG carriers. The service includes day-to-day vessel operations, fuel
optimisation and claims handling, covering full post-fixture support from the time the vessel is fixed for a voyage, through its successful execution, to the closure of the voyage books.
Petredec Global has recently begun taking delivery of six 93,000- m3 VLGCs building at Jiangnan Shipyard. The first, Harzand, is the largest LPG tanker the yard has built. All six will are being fitted with dual-fuel propulsion and are designed to emit 23 per cent less CO2 than conventional equivalents, while also generating a 25 per cent premium on the spot market. The series is due for completion in early 2024, by which time Petredec will have 26 VLGCs in its fleet.
maersktankers.com
www.petredec.com
Christiania Shipping has ordered two 13,000-dwt stainless steel chemical tankers from Murakami Hide for delivery in the second half of 2025. “This is in line with our strategy – both in terms of adding more vessels in this size to our fleet, as well as expanding further on our relations in Japan,” says CEO Fridtjof Eitzen. The new ships will be the largest in the company’s fleet, which operate mainly on trades between northern Europe and West Africa, as well as intra-Mediterranean.
www.christianashipping.com
Terntank is finding willing charterers for its lower-emission product tankers, with Neste signing timecharters on two additional newbuildings. The 15,000-dwt tankers are designed with foldable suction sails (left) and dual-fuel engines enabling the use of e-methanol as fuel, which is produced with Power-to-X technology using captured carbon and renewable energy. Their innovative design and onboard emission reduction technologies will further reduce Neste’s environmental
impact and emissions of shipping. They are due for delivery from CMHI Jinling Shipyard in 2025/26.
“Together with our partners, we are scaling up our renewable and circular solutions production capacity,” says Lauri Helin, vice-president, logistics and operations, oil products at Neste. “Our partnership with Terntank supports our commitment to sustainability, particularly our target towards reducing emissions across our value chain. With these vessels we continue to reduce the emissions and environmental impacts of transportation. We are delighted to partner with Terntank.” terntank.com
Exmar has reported first quarter revenues of $65.7m, up from $24.7m a year ago, with EBITDA increasing from $1.3m to $24.1m. Net profit came in at $19.2m, compared to a loss of $7.7m a year ago. The improvement reflects different contracts concluded last year together with continuing favourable market conditions. Exmar’s shipping division delivered a 4 per cent increase in revenues and a 35 per cent improvement in EBITDA, mainly due to higher rates for all vessel sizes.
In the midsize LPG tanker market, which is where Exmar is strongest, rates remained firm during the first quarter but, while demand remains stable, there is less certainty over the short-term outlook due to the large number of newbuildings scheduled for delivery by end of the year. New environmental restrictions may also put some downward pressure on older ships, Exmar says.
The company is continuing with its fleet renewal programme, having declared newbuilding options on two 46,000-m3 LPG/ ammonia carriers and selling its 2002-built carrier Bastogne during the quarter. exmar.be
TANK CLEANING • THE SEARCH FOR SUSTAINABILITY IN THE TANK DEPOT SECTOR LEADS INEVITABLY TO THOUGHTS OF REDUCING WATER CONSUMPTION. STC REVEALS HOW IT IS GOING ABOUT IT
THANKS TO INNOVATIVE recycling techniques, Stolt Tank Containers (STC) is keeping water, energy and detergent usage to a minimum during the cleaning of its tank containers. STC has been trialling new processes at its cleaning depots to recycle water and energy, as well as minimise the need for additives and detergents. This is resulting in significantly less waste, lower costs and a more planet-friendly tankcleaning operation.
STC’s Moerdijk terminal in the Netherlands is an excellent example. A new system recently installed at the depot is expected to reduce wastewater discharge by 70 per cent and retain the remaining wastewater for reuse at a temperature of 23°C so it does not require as much energy to reheat.
Wastewater from tank container cleaning processes is being drained into the STC depots’ wastewater installations, where it is processed via state-of-the art technology for re-use. This involves the separation of oils and
fats, physical chemical treatment, biological treatment and enhanced effluent polishing, incorporating ultra-filtration, nano-filtration, active carbon absorption and sand filtration. Following that process, the water is clean enough to drink – and certainly clean enough to use all over again for cleaning the next tank container of its chemical residue.
The overall result of this is that the use of fresh water at the Moerdijk depot will be reduced by some 21,000 m3 per year; discharge of wastewater into the public sewer system will fall by a similar volume to some 9,000 m3 per year.
In addition to the use of water, the other main input to the cleaning process is the heating of water to perform high-pressure cleaning, dissolve product residue and flush the resulting waste; this all requires a lot of energy. The optimal temperature for cleaning tank containers is about 85°C, while water
coming out of the mains is typically around 11°C, so there is a lot of work to be done to get the water up to temperature.
STC has now invested in special rotating heat exchangers at the Moerdijk depot, as a result of which it can recover a large proportion of the thermal energy in the wastewater that has been used for tank container cleaning. This provides a starting point of 23°C (instead of 11°C), meaning there’s 12°C less water heating to do. That results in a huge saving in natural gas consumption. In addition, this transfer of heat cools the wastewater to a point where it enables the oil fat separator to operate more efficiently.
Moerdijk’s consumption of natural gas is expected to fall by 57,000 m3 per year, saving 37,000 kg of carbon emissions. That is equivalent to one year of household gas consumption for every one of the depot’s 45 employees.
The re-usable water that comes out of Moerdijk’s enhanced filtration system is very low in salts and minerals. This soft water does not require additives prior to being re-heated in the boilers and reduces the amount of detergent needed for effective cleaning. As a result, STC expects to reduce chemical consumption by around 2,000 kg a year at Moerdijk.
Following the trial, this innovative system will be rolled out to other STC cleaning depots around the world.
www.stolt-nielsen.com
The Mouvex® B200 Flow Control oil-free screw compressor delivers high flow rates in a rugged design that’s lighter than competitive models. The “plug-and-play” installation requires no drive shaft, as well as no mounting bracket and is fully coated for corrosion resistance. The B200 delivers all of this with a 3 year warranty.
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tough to achieve by 2030, as Wiklund explains: “Our goal is aggressive, especially since the technology to achieve it does not currently exist. But development is moving forward by leaps and bounds and should have come far enough to achieve the goal by 2030.”
The investment that is involved will include building custom charging infrastructure that will enable drivers to charge their vehicles while loading or unloading. “When we haul large loads, these take about an hour to load or unload, which gives sufficient time to charge enough to get to the next station, where the opportunity to charge again will be available,” Wiklund says. This will mean that the trucks will not have to make extra stops to fill their tanks, as is the case with diesel-powered vehicles, and will make the fleet more productive. That will reduce costs and the overall environmental impact, adding to the search for sustainability.
WIBAX HAS SET itself a very ambitious target: to run a fully electrified fleet, fully powered by self-produced and renewable electricity, by 2030. The Sweden-based logistics provider runs a fleet of vehicles delivering chemicals and biofuels to the Nordic market, an area with a strong focus on environmental protection, but this latest programme will call for some new systems that are not yet available.
However, as CEO Jonas Wiklund stresses, Wibax has been pushing the boundaries of what is possible in the logistics sector since its inception and it has worked for greater sustainability on all levels to ensure its business structure can be maintained well into the future.
“As we own the entire logistics chain, we are responsible for making it as sustainable as possible, from several perspectives. Our Swedish terminals are largely carbon-neutral and the next step is to implement more sustainable road transport. This is where you can make the biggest difference,” says Wiklund. There are haulage companies already using electric vehicles, but only a few are using electric power for heavy goods vehicles; Wibax has worked with Scania to come up with a viable solution. At the same time, though, the company does not want to put a heavier burden on an already stressed electricity supply network so the second part of its ambition – to produce its own electricity – is equally important. That goal, though, will be
Indeed, Wiklund believes that economic and environmental sustainability should go hand in hand if sustainability is to be truly achieved. Therefore, all of Wibax’s investments are favourable from both perspectives. “If environmental sustainability is not justifiable from an economic perspective, it will be too great a challenge to maintain a sustainability mindset in the long run,” he says. “By developing solutions that are both environmentally and economically sustainable, we can ensure that sustainability work continues. Increased fuel costs, alongside the fact that there is a limited amount of oil, could become problematic for the transport industry in the long run.
“Oil is a finite resource and, regardless of how you look at its environmental impact, the shortage of it will significantly affect the transport industry. A substitute, for example electric vehicles, will make it easier for the industry in the future,” Wiklund concludes.
“Our investments enable sustainability work that is good for both the environment and the company’s finances. We have had tough growth targets from the start – and it is through achieving these targets that the real change happens.”
www.wibax.com
ELECTRIFICATION • WIBAX IS ALREADY RUNNING ELECTRICPOWERED TRUCKS BUT NOW WANTS TO GO ALL OUT AND GET RID OF DIESEL TRUCKS ALTOGETHER BY THE END OF THIS DECADE
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DIGITALISATION • THERE IS A LOT GOING ON IN THE DIGITALISATION OF THE TRANSPORT CHAIN. INTERMODAL TELEMATICS PROVIDES AN UPDATE ON SOME CURRENT MAJOR DEVELOPMENTS
INTERMODAL TELEMATICS (IMT), which specialises in the development and provision of telematics tools and services for the intermodal transport sector, had a lot to talk about during the Transport Logistic show in Munich last month.
Firstly was the launch of the Rochester Level sensor, RL22-Ex, which is used together with the third-party Rochester Level Gauge to create a digital level sensing solution for tank containers and tank wagons, measuring and monitoring the liquid level inside the tank and wirelessly transmitting those values to an IMT communication and location terminal (CLT/ HCT), which, in turn, transmits the sensor data to the IMT platform where it can be accessed remotely via IMT’s web application. This helps increase visibility during transport and improve operational efficiency.
When installed on a tank, the RL22-Ex measures liquid level by connecting to a compatible Rochester level gauge, and is
installed on the magnetic coupling plate through a special sensor housing. This probe is connected by cable to a digital sensor with a display. Therefore, an existing Rochester analog level gauge can be converted to a digital readout by replacing the analog dial with the IMT probe. This allows the RL22-Ex to read and store measured liquid levels. If the client chooses to work wirelessly, it is possible to connect the RL22-Ex wirelessly to a Wireless Display (WD19-Ex).
By using IMT’s open and free API, this telematics solution can be effortlessly integrated into any existing Transport Management System (TMS). This allows monitoring of the actual versus expected fill rate of a tank container or rail wagon. By combining geoposition data from IMT’s main gateway (CLT20-Ex) and the modular, extensible IMT web portal, complex business rules can be implemented. This allows alert notifications to be limited to certain
circumstances, for example, alert notifications configured only when the level changes outside loading or unloading zones.
The RL22-Ex is ATEX IIC certified and can therefore be used with the transport of hazardous and non-hazardous liquids in all sectors. The sensor can be updated wirelessly with new firmware via the IMT Communication and Location Terminal (CLT/HCT), no matter where the container or rail car is located, at any time of day.
Also announced during the Transport Logistic show was an extended collaboration with Peacock Container, which is to install IMT’s telematics systems across a significant part of its 20,000-strong tank container fleet. IMT says this is a major step forward as Peacock is the first leasing company to apply its systems without direct demand from its customers.
The added value for Peacock’s customers is that they will be able to activate IMT’s telematics services at any given moment without any investment in hardware or installation and with no waiting time. This brings a lot of added value, as customers cannot only monitor their tank container and cargo instantly but, based on the started implementation of artificial intelligence (AI) on the IMT platform, also the actual loading status, the moment of loading/ unloading, the duration of heating, the moment the tank container is cleaned, and much more.
“We are thrilled to collaborate with IMT to bring the latest telematics solutions to our customers,” says Jesse Vermeijden, managing director of Peacock (pictured opposite). “This collaboration marks a significant milestone in our partnership, and we are confident that our customers will benefit greatly from this added value.”
The collaboration with Peacock mentions the implementation of AI and this is something that IMT is now investigating in great detail in partnership with its customers. AI has been coming for some time but, IMT says, the global launch of ChatGPT, an advanced
language generation model developed by OpenAI, has prompted a huge acceleration in its uptake. The potential of AI, big data and machine learning, as well as the long-term and short-term benefits for the railcar and tank container markets, is no longer a distant future but is happening right now. IMT is developing algorithms and machine learning tools to generate meaningful insights and a solid foundation of information.
Just ten years ago, IMT notes, there were many labour-intensive day-to-day tasks in the tank container and rail tank car sectors. Nowadays, what used to be a manual task for operators, which consumed a huge amount of time and effort to do correctly, and thus to manage as well, can now be supported by AI. The transition towards smart sensor technology has greatly alleviated pressure on operators, because measurements are taken and relayed automatically and continuously.
A telling example in the AI telematics field
is the full/empty status of an asset. Sending the full or empty status directly to the TMS avoids manual input, increases the speed of information and gives an operator the ability
to deploy the fleet even more efficiently, through early signalling of available tank containers or rail wagons.
www.intermodaltelematics.com
DIGITALISATION • TELEMATICS PIONEER NEXXIOT HAS LINED UP A NEW PARTNERSHIP AND INTRODUCED AN AI-ENABLED SYSTEM TO GIVE ITS CUSTOMERS EVEN GREATER VISIBILITY
NEXXIOT HAS SET up a partnership with project44 to accelerate the process of digitalisation in supply chains through the use of sensor and network insights. The partnership will leverage the TradeTech specialisation of Nexxiot with project44’s end-to-end visibility platform, allowing customers to integrate conditional and location data with the largest supply chain network in the world. At present, the partners say, shippers, cargo owners and supply chain participants lack the critical asset intelligence and insight they need, exposing them to unacceptable risks, lack of visibility and insufficient process control. This partnership between project44 and Nexxiot will add vital real-time asset-level monitoring to enhance project44’s Movement platform by improving data-driven assurances on safety, security and compliance. It gives joint customers enhanced data using carrier milestones, signals, and historical
performance with precise GPS tracking. Additionally, project44 and Nexxiot customers now have capabilities to drive advanced risk management strategies on order and inventory health.
“At project44, we strive to provide the most comprehensive supply chain visibility for all of our customers, and combining forces with Nexxiot is a huge step towards that goal,” says project44 founder and CEO Jett McCandless. “This partnership enhances the insights of our Movement platform with essential real-time asset level tracking, benefitting everyone with the new standard in actionable insights.”
Nexxiot is also pressing ahead with its TradeTech development, launching a new AI-enabled product, Scope AI, to provide a conversational interface into Nexxiot’s unique data on locations, status, conditions of cargo, and supply chain events like delays. Scope AI
extracts and presents key insights from the billions of data points generated every month by Nexxiot’s Edge and Globehopper devices traveling on all major trade lanes, and provides answers to queries.
“Nexxiot is always focused on delivering more value to our clients,” says Ákos Maróy, Nexxiot’s Chief Data Officer. “Scope AI makes it possible for clients to gain immediate insights into the status of their transport assets based on real-time data from the fleet. We are determined to make our clients’ lives easier by adding a simple, intuitive verbal interface to display the data generated by our sensors and gateways. We did this to offer asset intelligence and combine it with shipment intelligence in a way that’s never been experienced before. We do this to better deliver on our mission to increase certainty and make clients’ operations easier, safer, and cleaner.”
Nexxiot has also signed up a major new customer in the shape of Ermewa, one of the leading European rail car leasing firms. Ermewa, which has a fleet of more than 45,000 rail cars, will integrate Nexxiot’s Asset Intelligence technology to its existing telematics portfolio and will now be able to use Nexxiot’s cloud for advanced real-time Asset Intelligence and detailed performance metrics around location, utilisation, mileage, shocks and other significant events that affect maintenance, transport quality, and safety. Nexxiot, as an IoT technology partner to Knorr-Bremse, is a driving force behind the digitalisation of train sub-systems to optimise their maintenance and ensure fleet uptime is maximised.
“Our customers are requesting increased access to railcars as part of their strategic plans to move cargo from road to rail. We commit to making sure their needs are met with efficient maintenance processes, driven by the best digital monitoring capabilities available today,” says Peter Reinshagen, managing director of Ermewa. “Partnering with Nexxiot enables Ermewa to offer an additional level of maintenance control that ultimately benefits our clients in terms of fleet availability and transport quality.” nexxiot.com
containers and other equipment that comply with international rules and standards.
The Code calls for effective interaction between the shipper, who is responsible for specifying requirements for the type of equipment suitable for the cargo intended to be carried, and the container operator in providing units that satisfy such requirements, meet applicable safety and manufacturing standards, and are clean. Faulty and badly maintained units may have as serious ramifications as incorrect and deficient packing of cargo inside the units.
“Engagement with governments and industry groups representing the diverse mix of supply chain stakeholders is one of our primary goals,” explained TT Club’s Peregrine Storrs-Fox. “Through communication and understanding of the safety issues comes a wider implementation of the CTU Code and
other best practices aimed at cargo and environmental safety. To this end we urge regulatory and advisory bodies as well as associations to unite with us in spreading the good word.”
The group has been working with IMO for some time, contributing to aspects of the CTU Code and other regulatory recommendations, but there remains an element of concern that governments may not effectively be communicating agreed IMO requirements and advisory information within their jurisdictions. Lars Kjaer of the WSC explained: “We want to make sure that governments as well as industry are promoting the CTU Code and its best practices to all parties in the CTU supply chain around the globe.”
Ultimately, though, it is those that pack containers that have the primary responsibility for ensuring cargo integrity and safety, and those responsibilities are laid out clearly in the CTU Code. Chris Welsh, secretary-general
of GSF said in Amsterdam: “In many modern international supply chains there are multiple ‘hand-offs’ where cargo is passed variously from manufacturers, suppliers, distributors, warehouses, consolidators, forwarders and logistics operators to shipping lines. Ultimately, however, it is the responsibility of the shipper as the party causing the transport of the CTU unit to demand and control compliance with proper packing standards, and to specify the type of equipment needed for the cargo. This is a responsibility clearly set out in the CTU Code. It cannot be negated or ignored irrespective of the complexity of the logistics chain.”
This industry group is seeking to communicate to all stakeholders through governmental and industry events. Progress is being made in increasing awareness of the CTU Code and linking with other organisations to deliver improved safety and sustainability in the international supply chain.
common objectives. Both Feique and ADIF share the idea that having an efficient rail freight transport system would significantly contribute to improving the competitiveness of Spanish chemical and derivatives manufacturing plants.
After the signing of the new protocol, a high-level group has been set up whose purpose is to define the main lines of action of the Protocol and submit the plan for approval. This group, involving senior executives from both Feique and ADIF, will be able to pass on their recommendations to a central working group so that different actions can be agreed that will help to improve management in terms of quality, reliability and efficiency, and to analyse the current use of the existing rail infrastructure. That group will also look at establishing potential service provision agreements by ADIF.
As a result of this work, it will be possible to carry out an analysis and assessment and, where appropriate, proposals for improvement of the connectivity of the railway network with the factories and industrial estates of the chemical industry, along with the most important ports for the chemical industry and with national borders, all in the context of the Atlantic and Mediterranean Corridors. This will feed into identification of the priorities and plans for action, depending on the projected volume of demand for rail freight from the chemical industry.
SPAIN’S CHEMICAL INDUSTRY and its rail network operator have renewed their agreement, first signed in 2013, to collaborate in the promotion of the use of rail freight transport in the chemical sector. The renewal document was signed last month by Juan Antonio Labat, general director of the Business Federation of the Spanish Chemical Industry (Feique), and the president of the Railway Infrastructure Administrator (ADIF), María Luisa Domínguez. The agreement is part of ADIF’s ‘Strategic Plan 2030’ and will be in place until the end of 2030, with the option to be extended for another two years. ADIF, as part of its responsibility for the maintenance and operation of railway infrastructure under state jurisdiction, as well
as manager of its circulation and safety control system, has among its priority objectives the promotion of freight transport by rail and the development of intermodality, aspects that are considered by Feique as a priority for the sector due to its relevant role in achieving a more balanced and sustainable transport system.
The renewal of the collaboration protocol between Feique and ADIF envisages the implementation of a specific programme of actions to improve rail freight transport in the chemical sector, which will provide for deeper analysis and improvement of production processes and the management of freight transport by rail through multidisciplinary work groups that facilitate the achievement of
Within the framework of the collaboration agreement with Feique during the validity of the previous protocols, the chemical factories and logistics facilities have been addressed from the perspectives of nodal and operational analysis, as well as the options for improving the service in each of the facilities. In the meetings held between the chemical industry, railway companies and logistics operators, intermodal transport has been identified as a success factor in increasing the competitiveness of Spanish chemical and derivatives manufacturing plants, and the promotion of railway motorways and the development of new railway traffic between Tarragona and Portugal. www.feique.org
RAIL • WIDER USE OF RAIL AND INTERMODAL TRANSPORT CAN HELP IMPROVE THE COMPETITIVENESS OF SPAIN’S CHEMICAL INDUSTRY. THE TWO SIDES ARE TO CONTINUE TO WORK TOGETHER
The ability of combined transport to help in the modal shift from road depends above all on the transport policy framework, Bertschi says, with a number of measures available that would help competitivity. Firstly, there needs to be a consistently effective operational management of the international Alpine transit of trains on the Rhine-Alpine corridor, especially in light of impending renovation and construction work on the Rhine Valle Railway. Switzerland can play a leading role in this, with the support of Italy, which is reliant on that link.
Hupac would also like to see a temporary suspension of the annual reduction of subsidies for combined transport until the economic crisis eases, which would at least partly compensate for the loss of competitiveness so far this year. The sector must, though, recognise the pressure for a shift back to pure road transport and be able to continue the Rolling Highway, which is currently very busy, until 2028.
Finally, Hupac says, a transparent flow of data along the entire combined transport service chain helps to ensure that capacity is better used and that individual partners can plan better. Existing open systems such as DX Intermodal’s Data Hub must become the standard for all combined transport in Europe.
HUPAC GROUP LAST year carried 1,104,000 road consignments in combined road/rail and seaport hinterland transport, a 1.8 per cent decline compared to 2021. This fall reflected a series of problems: capacity bottlenecks in Germany; intensive rail work on the RhineAlpine corridor on an off through the year; operational inefficiencies; and, later in the year, a loss of freight volumes as a result of the economic slowdown in Europe, particularly for energy-intensive industries such as steel, chemicals and paper.
In addition, since January 2023, price increases for rail transport in Europe have been significantly higher than those for road transport. At the same time, as the industrial economy stagnates or declines, significant capacity is again available in road transport. This leads to a significant shift of transport
from rail to road. Hupac says that overall volumes are down again by between 10 and 15 per cent year-on-year in the first four months of 2023.
“The sum of negative factors such as the decline in traffic due to the economic situation, high rail costs, falling road freight rates and the chronic instability of the rail network represent a real risk of modal shift,” says Hans-Jörg Bertschi, Hupac’s chairman. Although the volume of combined transport in Europe fell significantly in the first quarter, the quality and reliability of the international rail infrastructure has hardly improved. Too many trains are still cancelled or delayed for days. “If the reliability of the rail infrastructure and the quality of combined transport do not improve, we can expect a further shift back to the roads in the coming months,” Bertschi adds.
Despite these problems, Hupac is continuing with its investment in new terminal capacity and IT systems, with a major terminal near Milan due in service in 2026 and other investments at Italian terminals at Piacenza, Novara and Busto Arsizio.
“We are convinced that our competitive, market-oriented combined transport products offer real added value for environmentally and climate-friendly logistics,” says CEO Michael Stahlhut. Compared to pure road transport, the Hupac network saved around 1.5m tonnes of CO2 in 2022, reduced energy consumption by 17bn megajoules and took 21m tonnes of goods off the roads. “Our long-term corporate strategy is part of the answer to the major challenges facing society, such as climate protection, energy transition and sustainable economic development. We will continue to focus on this in the current year,” Stahlhut adds.
www.hupac.ch
INTERMODAL • HUPAC HAS DEDICATED ITSELF TO SHIFTING FREIGHT OFF THE ROADS AND ONTO RAIL BUT LAST YEAR SAW SOMETHING OF A REVERSAL OF FORTUNE WITH PROBLEMS ON MANY FRONTS
VAN MOER GETS ITS COAT ON Hüni+Co and Van Moer Logistics are to offer a full service for tank container coating in Antwerp as from this summer. Under the terms of a new partnership, the two companies are extending their existing relationship, which already provides minor repairs for tank coatings, to include complete interior coatings. Until now, this was only possible at the Hüni+Co location in Friedrichshafen in southern Germany.
“With this cooperation, we are taking a big step forward. In future, our customers will also be able to have their tank containers serviced, repaired or recoated in the Van Moer workshops in Antwerp,” says Alexa Huni (below), managing director of Hüni+Co.
“We have been working successfully with Hüni+Co for years,” adds Jo van Moer, founder and CEO of the logistics service provider. “We are very pleased to be able to offer our customers further and more comprehensive services with this new cooperation.” Tank container operators and leasing companies based in the Antwerp region in particular will benefit from the proximity to the workshop, which will mean shorter transport routes, lower lead times downtimes and significantly lower (transport) costs.
For every enquiry and every order, Hüni+Co will handle the qualified preliminary tests as before, comparing the specific customer requirements and the technical prerequisites of tank containers and coatings. The specialists from southern Germany also prepare the quotations and take over the warranty. The Van Moer Logistics teams, which are comprehensively and continuously qualified by Hüni+Co, will initially only process ChemLINE 784, a function-specific corrosion protection coating that has been used for many years to protect tank container structures against a wide range of hazardous materials. In
a later phase, the service portfolio will be expanded to include other coatings from the Hüni+Co range.
www.hueni.de
www.vanmoer.com
Ermewa, parent company of Eurotainer, Raffles Lease, DEMI and subsidiaries in the rail sector, has been renamed Streem. Streem specialises in designing, optimising, financing and managing strategic assets for the global supply chain, offering customers safe, cost-efficient and environment friendly asset solutions. It has offices in more than 40 locations and more than 1,300 employees.
The move is an extension of the sale of Ermewa Group by French rail company SNCF in April 2021 to CDPQ, a Canadian pension fund management firm, and DWS Group, a leading asset management company based in Germany.
www.ermewa.com
Neele-Vat has acquired Otentic Logistics, which is active in the storage and transhipment
of raw materials for the food industry and the storage of dangerous goods, headquartered in Oosterhout, the Netherlands. “The activities of Neele-Vat and Otentic complement each other well,” says Cuno Vat, CEO of Neele-Vat. “We can now offer our customers an even broader service. And with the new location near our branches in Hazeldonk en Meer (Belgium) we have a good starting position to expand our services internationally, so that we can fulfil our ambitions to grow as a family business and to remain competitive.”
For the time being, the Otentic companies will continue to operate independently and under their own name.
www.neelevat.com
www.otenticlogistics.nl
Petrefuel Holdings, a subsidiary of Petredec Onshore, has agreed to acquire Royale Energy, one of the largest privately owned petroleum wholesale distributors in South Africa. Royale operates an extensive network of retail filling stations, a major fuel depot in Gauteng and three smaller depots. Royale operates mainly in
provinces of South Africa where Petrefuel is currently not active.
James Bullen, head of downstream at Petredec Onshore, says: “The South African liquid fuels landscape is currently being redefined following a number of significant domestic and international events over the past few years. We welcome the team from Royale Energy to Petrefuel and look forward to leveraging the combined strengths of the two businesses. Royale has made good progress over the past two decades and established itself as one of South Africa’s leading independent operators and its addition to the Petrefuel portfolio will add significantly to our current business.” petredec.com
Trimac Transportation has acquired American Industrial Partners Logistics (AIP), an Ohio-based provider of bulk transport, terminalling and warehouse services for the plastics, liquid chemicals, foodgrade and metal production industries. AIP’s main facility in Wapakoneta, Ohio is strategically located halfway between Cincinnati and the US-
Canada border crossing at Detroit/Windsor, and is also served by a CSX rail line. AIP brings with it a fleet of 13 tractors and 119 trailers, as well as other equipment.
“We are excited about this next step in our US growth,” says Matt Faure, president/CEO of Trimac. “We look forward to connecting our most recent acquisition of AIP Logistics with superior service with safety. The integration with a leading logistics company such as AIP will place Trimac in an excellent position for its continued growth and contribution to business partners and communities in this region.” www.trimac.com
Contargo has set up a new direct container barge connection between the seaports of Antwerp and Rotterdam and its multimodal terminal at Dourges in northern France (left). The service will run two rounds trips per week using two push barge units and will handle all types of container, including those with dangerous goods (though not Classes 1 or 7). Contargo can also organise pre- and oncarriage by road through its trimodal service. Transit time is 30 hours from Antwerp or 40 hours from Rotterdam.
“In order to meet market demand we have decided to expand our network to include the Dourges terminal, where we see great potential for development,” says Gilbert Bredel, managing director of Contargo Northern France. “This will be in addition to the regular services we have been providing for years now in Valenciennes, the most important terminal in the region for sea containers.”
www.contargo.net
Air Water Inc, the US subsidiary of Air Water Japan, has acquired UK-based M1 Engineering, which specialises in the manufacture of cryogenic road tankers and other equipment.
The move is a response to what Air Water perceives as an imminent need for more equipment to move hydrogen and other emerging energies.
“In what is M1 Engineering’s 50th year anniversary of trading, this transaction marks a historic milestone for the company,” says Jason Gill, managing director of M1. “We’re excited for the opportunity to collaborate and grow with the Air Water America team to further enhance our product offering in hydrogen as the European market continues to expand. This acquisition enables M1 to access greater resources, products, and technology that will continue the long tradition of superior quality and technology that the M1 brand represents.”
www.awi.co.jp
www.m1engineering.com
Peacock Container has expanded its tank container fleet to 20,000 units, having taken delivery of a composite unit built by Tankwell. This new tank improves Peacock’s ability to provide its customers with efficient and sustainable transportation solutions for bulk liquids and gases, the company says.
“We are thrilled to add this new tank to our fleet, as it represents a significant step forward in our commitment to sustainability,” says CEO Jesse Vermeijden. “We are constantly seeking innovative solutions to improve our fleet and provide our customers with the most efficient and sustainable transportation options.”
Peacock’s diverse fleet of tanks includes containers for bulk liquids, liquefied gases, cryogenic gases, and bitumen. This range of tanks enables Peacock to offer comprehensive transport solutions for its customers across a variety of industries, including chemicals, food, pharmaceuticals, and energy.
peacockcontainer.com
DIGITALISATION • BASF COATINGS HAS DEVELOPED AN IBC TRACKING SYSTEM THAT, IN PARTNERSHIP WITH THIELMANN AND NXTGN, WILL NOW GO ON TO FURTHER DEVELOPMENT
BASF COATINGS HAS developed a tracking system for intermediate bulk containers (IBCs),Tracingo. The company has now come to a joint development agreement with NXTGN Solutions, which already offers the ibc.digital platform for tracking IBCs and foldable large containers, and packaging supplier Thielmann, to further develop the solution for the location and level measurement of IBCs in the supply chain. The partners are also preparing the sensors for ATEX certification to enable their use in hazardous areas and to meet the most stringent safety requirements.
The solution is a patented technology based on the evaluation of acoustic signals and the connection of sensors to the Internet of Things (IoT). It enables the location, fill level, shock load, temperature and contamination data of IBCs to be accurately measured. The collected data is processed and displayed in a web-based dashboard. It provides users from the logistics sector with a reliable basis for making decisions on
saving and optimisation measures in their fleet management.
Forwarding companies and manufacturers of all types of liquids can use ibc.digital to track and document the location of their containers, their fill level and conditions in real time. This transparency enables optimised resource planning, customised maintenance and complete traceability. Further development of this existing solution through the use of the Tracingo tracking system will help customers achieve even greater transparency and efficiency, the three partners say.
“Digitalisation is one of our approaches for continuous growth and more efficiency,” says Harald Borgholte, divisional digital officer at BASF’s Coatings division. “We not only develop coating solutions, but also intelligent digital solutions that offer customers added value. In the cooperation with Thielmann and NXTGN, we serve a completely new industry:
logistics. I am pleased to see how a business model has emerged from a user problem in our units and how we are now working together as partners to bring the product to the next level.”
Tracingo started as a user-driven digital initiative from BASF’s Logistics division and became a digital venture of BASF Coatings. Logistics and Container Management at the Münster site worked hand in hand with the company’s Digital Incubation Unit, which specialises in identifying and validating digital business models. They tested prototypes under the special requirements of the chemical industry, carried out user tests and investigated the market for their product.
“Real-time tracking and monitoring of IBCs is key to meeting the ever-increasing demands for supply chain security, sustainability and efficiency,” notes Patrick Franke, managing director of NXTGN. “IoT enables us to overcome these complex challenges. The development of a marketable solution together with BASF and Thielmann reflects the technological expertise of all parties involved as well as our company motto: from sensor to business model.”
Thielmann and NXTGN have been working together for several years in the field of container tracking using IoT technology. As the initiator and user of the technical solution, BASF Coatings remains an important innovation driver in the project. As a consultant for digitalisation in medium-sized companies and an expert in the field of IoT, NXTGN will lead further product development. Thielmann, which says it is the world’s leading manufacturer of stainless steel containers, will contribute its know-how on IBCs and customer requirements and act as a sales partner.
Eycke-Christian Dörre, managing director, services at Thielmann, says: “We support our customers with optimal services such as the collection and delivery of containers, cleaning and maintenance. Supported by digital technologies, we are also addressing issues such as tracking and smart fleet management, so that the life cycles of our products are transparent for our customers and for us.”
www.nxtgn.de
www.thielmann.com
Internal and external cleaning are automated in accordance with industrial and certified standards, and disinfection by steam is also possible. When choosing this state-of-the-art facility, the logistics company attached particular importance to an energy-efficient, resource-saving cleaning process. According to Jens Enskat, managing director of cotac, “This IBC cleaning system increases our processing capacity by 30 per cent - with the same number of staff. It makes our colleagues’ daily work easier, and gives our customers even greater planning security.”
The cotac group is an integral part of the full-service portfolio of the Hoyer Group. Twelve locations at logistics hubs in Europe, Asia and the US now support the group’s transport logistics processes. Cotac offers globally uniform standards for tank cleaning, repair and depot services, and is regularly audited in accordance with DIN EN-ISO 9001 and the Safety and Quality Assessment for Sustainability (SQAS) scheme. Cotac’s technical services ensure the smooth, efficient and safe transport logistics of the Hoyer Group all around the world, Hoyer says.
HOYER HAS COMMISSIONED what it says is one of the most modern semi-automatic cleaning lines for intermediate bulk containers (IBCs) at its Mannheim site in Germany, which started operation on 5 May. The move increases efficiency and significantly shortens throughput times for IBCs in the cleaning process. This results in optimised fleet utilisation, better planning and faster provision of the stainless steel containers, which are in increasing demand – Hoyer says it has recorded “significant growth” in this business area of the past two years.
“Through this investment, we further strengthen the cleaning network of the Hoyer Group,” says Marlen Blechschmidt, director of IBC logistics at Hoyer. “We will continue to grow our IBC business. With our network of workshops, depots and cleaning facilities through our cotac subsidiary, we offer reliable full service from a single source. This enables us to serve our major customers in the chemical, cosmetics and food industries even more efficiently.”
The new, semi-automatic plant is primarily designed to clean chemical and cosmetic products, but can also perform certified cleaning operations for food products, including kosher. Due to the high compatibility of the state-of-the-art plant, the wide range of different IBC types in the Hoyer Group portfolio poses no challenge.
Hoyer operates a fleet of more than 50,000 IBCs for the chemicals, foodstuffs and cosmetics industries, in a range of sizes, stainless steel grades and designs; some are fitted with agitators. Hoyer notes that it uses IBCs both for transport and storage, and says there is a particular demand among its customers for heatable IBCs for the food industry, cylindrical containers for the paint and coatings industry, and pressure vessels – socalled Mini Pressure Tanks (MPTs) - for specialty chemicals.
The Mannheim depot offers a lot more than IBC cleaning; like all of cotac’s locations, it primarily acts as a cleaning depot for tank containers, and also provides testing, repair, maintenance and approvals for tanks containers, repairs for IBCs, and the storage of empty tank and box containers. The cotac sites offer third-party cleaning as well as handling Hoyer’s own IBCs and tanks.
www.cotac-group.com
www.hoyer-group.com
IBC CLEANING • HOYER HAS EXPANDED THE IBC CLEANING FACILITY AT THE COTAC DEPOT IN MANNHEIM, RESPONDING TO GROWING DEMAND FROM CUSTOMERS AS WELL AS ITS OWN REQUIREMENTS
REPORTS GROWING DEMAND FOR ITS STAINLESS STEEL IBCS AND NEEDS MORE CAPACITY TO BE ABLE TO KEEP THEM IN SERVICE
PRODUCTS • SCHÜTZ USED THE RECENT INTERPACK SHOW TO REVEAL SOME OF ITS LATEST INDUSTRIAL PACKAGING INNOVATIONS AND PRESS ITS CASE FOR GREATER SUSTAINABILITY
AS A PIONEER OF of the circular economy, Schütz has for decades been committed to holistic packaging concepts. With its products and services, the company helps customers become more efficient, save material and energy and, by doing so, reduce their carbon footprint. As well as the environmental sustainability of its packaging, other aspects such as maximum safety and economic efficiency, global supply security and helping to optimise the user’s processes play a decisive role for Schütz.
All this was on show last month at the Interpack show in Düsseldorf, where Schütz had on display numerous innovations and world premieres from its intermediate bulk container (IBC), plastics drums and steel drum portfolios. These include the new Green Layer series of packaging, which has 30 per
cent recyclate in the middle layers of IBC inner bottles, drum bodies and jerrycans, which is recovered as part of its worldwide collection programme for emptied packaging. In keeping with this commitment to sustainability, Schütz presented other innovations that help to minimise the CO2 footprint of packaging through the use of recycled material. These include a newly developed, eco-friendly full plastics frame pallet, specially designed for the safe and smooth transport of IBCs in modern automated warehouses. Its special geometry makes the pallet suitable for in-house transport on conveyor systems. The pallet is highly durable and is made entirely with recyclate collected by Schütz during the reconditioning of used IBCs in the company’s own recycling centre.
Another innovation on show in Düsseldorf was the Schütz Dip-tube system for the completely closed discharge of highly sensitive and hazardous filling goods from IBCs and plastics drums. The solution was specially developed to give liquids a high degree of protection from external contamination during discharge. The Schütz Dip-tube is suitable for use with both Schütz Ecobulk IBCs and Schütz tight-head drums and is compatible with all leading connection systems on the market.
As a leading global trade fair, interpack is an important source of ideas for the entire industry and thus the appropriate setting for a world premiere from Schütz: the new Laser Drum was on show for the first time. Schütz uses hot-dip galvanised sheet steel directly from the coil to manufacture the steel drums. The raw material is dipped into a molten zinc bath before the coil is wound and galvanised to obtain a high-quality, evenly distributed zinc coating on all sides. The drum body is manufactured in a special laser welding process by butt-welding the sheet metal together. After lid and base assembly, the
Schütz Laser Drum is comprehensively protected against corrosion inside and outside.
This new type of drum is a highperformance alternative, especially for demanding and sensitive filling products, for which in the past conventionally galvanised or internally coated drums have been used.
Another innovation is the Schütz Drumfix load securing system, which allows steel drums to be safely secured during transport. With the Drumfix system, four drums can be securely fixed on a pallet. The system, made of reinforced and recycled plastic, was specially designed to create fast, environmentally friendly and stable load units.
The Ecobulk SX-D IBC, featuring a double-walled design, has been introduced specifically for use in the transport and storage of flammable hazardous liquids. Even under extreme conditions and in critical areas, this new container offers maximum protection thanks to a closed, fire-resistant outer hull made of steel. In the version with an integrated Dip-tube system for filling product removal from above, the SX-D is the first and only combination IBC so far to have FM Global approval. At Intepack, Schütz debuted a prototype of a new variant that has access to an outlet fitting integrated into the outer hull, thus enabling discharge from below. With the protective lid closed, full leakage and fire protection are still provided; UL approval is being applied for.
Yet another premiere at Interpack was the new SC1 series of jerrycans (right), an extension of Schütz’s portfolio of plastic packaging for smaller filling quantities. Based on years of expertise in three-layer extrusion blow moulding technology, Schütz manufactures the jerrycans in various configurations and sizes for filling quantities ranging from 5 litres to 30 litres. The jerrycans are characterised by a high degree of stability, simple and safe stackability as well as optimised emptying. A Green Layer version will also be forthcoming.
Sustainability considerations also apply to the company’s own operations. Schütz has been making huge investments for many years in developing a regenerative and sustainable energy supply with its own wind
parks and solar plants. At its largest manufacturing site in Selters, Germany, for example, 50 per cent of the electricity demand has been covered by renewable energies since the beginning of the year.
All these new products and innovations are gradually being rolled out to Schütz customers around the world, which is resulting in the need for new production lines and, in some cases, completely new facilities. Schütz has, for instance, commissioned a fourth packaging production plant in China, in the city of Yangzhou, Jiangsu province. The new plant, which is located close to a growing centre for chemical production, is manufacturing composite IBCs and plastics drums; Schütz is also preparing an automated reconditioning line, which will allow it to provide a full range of services to customers in the region. “The new production plant means shorter transport distances and further increases supply security for our customers in the region,” the company states. The plant’s high-performance three-layer extrusion line produces IBC inner bottles equipped with special properties for specific
applications, including additional UV protection for sensitive filling products as well as an anti-static outer layer that allows the IBC to be used in Ex zones.
Schütz has also begun an extensive investment programme that will double capacity of its Simbach site in southern Germany, with an additional three-layer extrusion blow-moulding line currently being installed. This will allow the plant to produce inner bottles for Schütz’s Green Layer IBCs. At the same time, a fully automated assembly line for the production of Ecobulk containers is being installed, adding to both the product portfolio and production capacity at the site, and a hall complex for warehouse logistics is also being added.
Meanwhile, Schütz Container Systems is expanding its network in North America with a new location in Hazleton, Pennsylvania, where it is constructing a new IBC reconditioning facility due to commence operations in the third quarter. The location was chosen for its proximity to existing clients in Pennsylvania and eastern Ohio. The site will also produce new plastics drums and composite IBCs, including its Recobulk model.
www.schuetz.net
Greif launched a significant upgrade to its proprietary carbon emissions reduction calculator at the Interpack show in Düsseldorf, Germany last month. The tool is designed to help customers achieve their sustainability goals by understanding the carbon footprint of their packaging. The new ‘Green Tool Lite’, a version of the existing Green Tool that evaluates the environmental impact of Greif’s industrial packaging solutions using independent lifecycle data, will provide customers with carbon footprint metrics for its most popular intermediate bulk containers (IBCs), plastics drums and steel drums, quickly and efficiently via an easy-to-use interface.
Green Tool Lite gives customers easy access to environmental impact data by allowing them to analyse and compare specific industrial packaging products by entering key information into a calculator. Results are provided through a simple chart that shows the CO2 emissions created through the manufacture and transport of one or more product types, such as a new IBC versus a
reconditioned one. Also provided is the CO2 emissions equivalence, for example the number of trees that would need to be planted to sequester the same amount of emissions.
“We are excited by the opportunity Green Tool Lite provides in supporting and enabling more customers in their sustainability journey,” explains Aysu Katun, vice-president of sustainability at Greif. “It will allow us to assist more customers in making informed decisions about their industrial packaging to help reach their sustainability targets. It also supports our own commitment to advancing a circular economy and reducing greenhouse gas emissions. Each of us has a responsibility to protect the environment and reduce our environmental impact and the opportunity for positive change is greatest through collaboration.”
www.greif.com
Mauser Packaging Solutions has expanded its product offering in Singapore through a recent investment in state-of-the-art equipment for
the manufacture of plastic drums. The investment also further supports the use of Mauser Packaging Solutions’ Infinity Series, which contains recycled material, in the region.
The new line, at the Mauser plant in Tuas, produces UN-certified tight-head plastics drums, designed for use in the petroleum, oleochemical, lubricants, paints and coatings sectors. The Tuas facility, which also produces steel drums in a range of sizes, was opened in 2012.
The investment also enables Mauser to expand the availability of its Infinity Series of drums, which contain high-quality recycled material called Recolene®, manufactured in-house from suitable raw materials, such as empty industrial packagings collected through the company‘s Recover Syst-M and that have reached the end of their usable life. The Infinity Series products help reduce waste, conserve raw materials, and reduce greenhouse gas emissions, Mauser says.
“This investment demonstrates our ongoing commitment to further expand our footprint in the region and partner with customers to deliver sustainable packaging solutions with unmatched quality and customer service. Our regional approach, coupled with our global reach, provides new opportunities, and opens channels to new customers and markets,” says Ali Ozbudak, vice-president and head of Asia Pacific at Mauser.
Mauser is also expanding its reconditioning network and production of products that contain recycled plastics in Poland with investment in automated equipment. The investment will support the collection and supply of reconditioned intermediate bulk containers (IBCs) and plastics drums in the region and promote the circular economy through the wider use of post-consumer recyclate.
“The investments in Gliwice, Poland, are another milestone for Mauser Packaging
Solutions,” says Marcin Krzysteczko, sales director Poland at Mauser. “We are proud to expand our reconditioning capabilities and Infinity Series production capacity in Europe. We strive to create a more sustainable future for our customers and with our new capabilities in Poland, we are taking a big step forward,”
A new multi-layer, plastic drum blowmoulding machine will help meet growing consumer demand for Mauser’s Infinity Series product line. The new machine will be used to manufacture plastic drums ideal for use in a variety of industries.
“In addition to reconditioning and expanded Infinity Series capabilities, the new production site allows us to offer our customers even greater security of supply, flexibility in order fulfilment, new product opportunities, and the chance to reduce their carbon footprints,” adds plant manager Lukasz Wesolowski. mauserpackaging.com
LC Packaging and plastics recycler Healix have set up what they say is the first closed-loop recycling solution for the FIBC sector. Used FIBCs at LC’s customers’ locations can be collected and processed at Healix’s site in Maastricht, the Netherlands. The recovered polypropylene can then be used in the production of new FIBCs with 30% recyclate at LC’s Dutch-Bangla Pack facility.
“At Healix we are convinced that we can only solve the ‘plastic problem’ that is destroying our beautiful planet by working together with industry leaders worldwide,” says Marcel Alberts, founder of Healix. “It must be a joint effort and with LC Packaging’s commitment, we can take the next step in breaking the plastic wave by creating a circular future for plastic fibre waste.”
“This is a big step forward in using highquality transport packaging in a sustainable manner,” adds Marcel Schouten, FIBC director
at LC Packaging. “At LC Packaging, we have set ourselves an ambitious goal to have 50% of recycled materials in our packaging by 2030. With Healix as our partner, we believe we are right on track to make this ambition a realisation. We recently introduced our LC Carbon Footprint Calculator that allows us to calculate the carbon footprint of a customer’s FIBC very precisely. It also shows the savings possible when using recycled materials or switching to reuse.”
www.lcpackaging.com
SERRED, the European organisation representing the packaging reconditioning industry, has announced details of the 2023 International Industrial Packaging Conference (IIPC), which it will be hosting in Ghent, Belgium from 26 to 29 September. IIPC is traditionally held every three years, although the Covid pandemic has delayed this edition; it is also shared by SERRED and its partner organisation in North America (the Industrial Packaging Association of North America – IPANA) and Japan (the Japan Drum Reconditioners’ Association – JDRA) and
moves around the world between the three regions. The conference is also supported by the International Confederation of Container Reconditioners (ICCR) and other European packaging organisations.
The conference is organised under the theme: ‘Industrial Packaging and the Circular Economy’. Conference chairman Philippe Verstraete, on behalf of the organising committee, explains: “All around the world important developments on sustainability and the circular economy are taking place. There is no doubt that these issues will impact significantly your businesses in the next decades. On stage the latest knowledge and trends will be shared and discussed, which will help you guide your companies through the coming years.
“Discussing industry issues from various global viewpoints and sharing knowledge and information as an important business Ecosystem will extend your understanding and vision for the future,” Verstraete adds. Full details about the event, as well as the interesting social activities planned alongside, can be found on the event’s website, www.iipc2023.org.
ACQUISITIONS • IMCD GROUP HAS DUG DEEP INTO ITS POCKETS IN THE PAST FEW MONTHS, ADDING A SERIES OF SELECTED COMPANIES AROUND THE WORLD TO FILL NICHES IN ITS PORTFOLIO
IMCD HAS REPORTED a busy first quarter of 2023, during which it completed the acquisition of Orange Chemicals in the UK, Sanrise in China, ACM in Sweden and Tradeimpex in India; it also agreed to acquire CPS Oil-Tech in South Africa.
That flurry of activity has continued since, enabled by continued increases in financial results. First quarter operating EBITA was 8 per cent up on the previous year at €148.5m and net income rose by 6 per cent to €82.6m. Piet van der Slikke, in his final year as CEO of the group, says: “After record growth in 2022, I am pleased to report that IMCD’s results grew again in Q1. All regions contributed to the growth, despite the continuing difficult geopolitical and macroeconomic conditions. Markets and supply chains remain
unpredictable, requiring agility of our teams. Together we continue to look for opportunities to further strengthen our business model through acquisitions and expansion of our product and supplier portfolio and to optimise our customer excellence.”
IMCD reported first-quarter growth in all three regional divisions but particularly in the Asia-Pacific unit, where revenues and gross profit both increased by 11 per cent. That illustrates the importance of acquisitions to the IMCD model, since this year’s quarterly results included the contributions from seven companies – three of them in China – that were acquired during 2022. By contrast, in the Americas division, where there were just three acquisitions in 2022, revenues grew by 4 per cent, though gross profit did improve by 10 per
cent, reflecting an improvement in margins and changes in the product mix.
The Orange Chemicals and Sanrise deals had been lined up before the turn of the year but the acquisitions of Tradeimpex and ACM were turned around very quickly. The deal to acquire Tradeimpex Polymers, for instance, will provide IMCD with an expert business in the distribution of high-performance polymers and engineering plastics. Founded in 2003 and with its headquarters in Gurgaon, Haryana, Tradeimpex generated sales of some €39m in the financial year to end March 2022.
“India is a dynamic market, with promising growth prospects, especially in the mobility sector,” says Olivier Champault, business group director, IMCD Advanced Materials. “Tradeimpex is well established in this sector with its professional sales team and highperformance materials sourced from top-tier suppliers. Complementary to our current Advanced Materials business, this acquisition will enhance our presence in India and expand our offerings to the customers. The founding team of Tradeimpex will continue to work along with IMCD, post the completion of the transaction.”
In early May, IMCD appointed Narendra Varde to the position of managing director of IMCD India & Bangladesh, which will involve the development and execution of the group’s long-term strategy in south Asia.
The other new deal involved ACM AB, a Sweden-based distributor of chemicals and minerals, primarily to the coatings, adhesives, paper, plastics and constructions industries in the Nordic region. Established in 2007, ACM turned over some €13m in 2022.
Sami Valkama, managing director of IMCD Sweden, explains: “This is a significant growth and synergy opportunity for us, as ACM brings extensive knowledge, technical expertise, and strategically important partners. ACM’s business concept is very similar to IMCD’s and we are looking forward to serve our customers and principals with our strengthened organisation.”
Since the first quarter results were announced in late April, IMCD has lined up a further three acquisitions, two of them in Israel. Firstly, it acquired the import and distribution business of Tagra Biotechnologies, a leading distributor and supplier of cosmetic raw materials and ingredients for the beauty and personal care industry. Tagra’s distribution division is, IMCD says, a leading supply platform representing Israeli manufacturers, with a turnover in 2021 of some €6.5m. It will bring seven skilled
professionals to the IMCD Israel team as well as a local application laboratory that provides formulatory support for its customers’ research and development teams.
Speaking about the acquisition, Irene Canros, business group director of IMCD Beauty & Personal Care, says: “IMCD started its Beauty & Personal Care business in Israel with the acquisition of Zifroni in 2020. The addition of Tagra Distribution Division to our portfolio further solidifies our position in the market. Tagra’s deep understanding of the local market and its needs, plus their high-quality ingredients’ offering make them an excellent fit for IMCD’s portfolio.”
IMCD Israel has also entered the Israeli industrial market with an agreement to acquire KOI Products Solutions and Engineering. Founded in 1986, KOI Products Solutions has developed long-standing partnerships with some of the world’s leading suppliers of specialty products and predominantly serves the composites, paints, cosmetics, coatings and inks markets. The company is based in Petach Tikva and generated revenues of more than €8m in financial year 2022; it will add 13 employees to the IMCD Israel team.
“The acquisition of KOI Products Solutions represents another important step in the expansion of our industrial business in Israel,” says Frank Schneider, business group director, IMCD Coatings & Construction. “KOI’s
Products Solutions’ established supplier and customer base in Advanced Composites and Coatings, their deep understanding of the local market and strong team, make them an excellent fit for IMCD. We are very glad to welcome KOI Products Solutions to our company and look forward to working together to deliver even greater value to our customers.”
Completing the list of acquisitions is Allianz Group International, a distributor of active pharmaceutical ingredients to the Colombian market. “Since entering the market in 2019 through the acquisition of a pharmaceutical ingredients (APIs) distributor, IMCD Colombia has become an emerging leader in delivering speciality chemicals, ingredients and formulatory solutions across all our core business segments in Colombia,” says Pilar Castellanos, managing director of IMCD Colombia.
“We are pleased to continue expanding our expertise and footprint in Colombia through Allianz’s wide portfolio of APIs,” Castellanos adds. “This new addition will be instrumental in helping our customers and partners drive marketplace innovation and reinforces our commitment to increase our capabilities in supporting them.”
Allianz was founded in 2002 and was one of the first companies in Colombia to specialise in the distribution of APIs. Headquartered in Bogotá, it has 25 employees and generated revenues equivalent to some €6.9m in the financial year 2022.
It seems that IMCD’s highly aggressive approach to acquisitive growth is becoming a selling point for smaller operators looking to cash in or reap the rewards of being part of a global organisation. For instance, speaking about the deal, John Garzon, CEO of Allianz, says: “IMCD’s history and increasing reputation, especially throughout Latin America, has been exciting to witness and now be a part of. Joining IMCD Colombia reflects our dedication to continue serving our customers with quality service, logistics expertise and the expanded resources and technical expertise that IMCD is known for.”
www.imcdgroup.com
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Essentials made an important step forward with the signing of the acquisition of Aik Moh Group, significantly expanding its industrial chemicals and value-added services footprint in south-east Asia, as well as the opening of a new facility in Zhangjiagang, China.
Brenntag is also aiming to leverage its Digital.Data.Excellence (DiDEX) project to enhance efficiency, growth and excellence across the organisation, transforming it into a data- and tech-driven enterprise and industry leader that is the easiest to do business with. During the first quarter, the first Salesforce applications, part of the DiDEX programme, were rolled out in pilot regions of the US, just six months after project kick-off.
The acquisition of Aik Moh Group, a Singaporebased company that offers distribution, warehousing, blending and other services for solvents, glycols and blends throughout south-east Asia, is seen as a transformative move, extending Brenntag Essentials’ business into key focus markets in Asia Pacific, including Singapore, Malaysia, Indonesia, and the Philippines.
BRENNTAG HAS REPORTED first-quarter results very much in line with expectations. Group sales were virtually flat against last year at €4.53bn, with operating gross profit up just 0.7 per cent at €1.05bn. Operating EBITA was, though, down by 12.5 per cent year-onyear at €345.1m, with the loss concentrated in the Brenntag Specialties division.
“In a continued challenging macroeconomic environment with ongoing geopolitical uncertainties and strong inflationary trends, we achieved first quarter results in line with our expectations and guidance,” says CEO Christian Kohlpaintner. “Sales and operating gross profit could be kept stable compared to the exceptional strong level of the prior-year quarter. Operating EBITA normalised according to our expectations and guidance.
“As anticipated, the Brenntag Group showed a sequentially stronger performance relative to Q4 2022,” Kohlpaintner continues. “We observed a gradual monthly improvement in demand, with early indications for a positive Q2 volume development continuing. This is an additional motivation to our colleagues across the world who are relentlessly working on realising business opportunities and further developing our company in this tough operating environment.”
In the first months of 2023, Brenntag Specialties executed several steps to implement the divisional ‘Strategy to Win’, including the acquisition of a new water treatment facility in South Africa and the openings of two Innovation & Application Centres, one for Pharma in Singapore and one for Material Sciences in Mumbai. Brenntag
Speaking at the time of the acquisition this past March, Steven Terwindt, COO of Brenntag Essentials, said: “With the addition of Aik Moh Group to Brenntag Essentials, we execute our ‘Strategy to Win’ in the APAC region, strengthening our local and regional distribution network in Asia Pacific, enhancing our last mile delivery capabilities while at the same time expanding our mixing and blending services. We will foster our leading position as a value-added service provider and reliable distribution partner to our existing and new customers.”
For its part, Aik Moh sees the transaction as providing it with a leg up into the global market. Chairman Kah Moh Tan said: “We have grown from a company of five employees to a chemical distribution specialist with facilities and a sales organisation in several countries. It is a natural next step for us to join the global market leader in chemical distribution, to which we can add our capabilities and strengths, unlock synergies, and serve our joint customer base even better.”
corporate.brenntag.com
RESULTS • BRENNTAG SPEAKS OF A SOLID START TO 2023 AND SIGNS OF NORMALISATION IN A QUARTER THAT CAME IN MUCH AS EXPECTED. INTERNAL MEASURES ARE BEGINNING TO PAY OFF
ASSOCIATION • THE CHEMICAL BUSINESS ASSOCIATION HAS LEARNED A LOT OVER ITS 100 YEARS, AND IT CAN APPLY THAT EXPERTISE TO HELP ITS MEMBERS AND GUIDE GOVERNMENT POLICY
WHEN IT WAS founded in 1923, the members of the British Chemical and Dyestuffs Trading Association could not have foreseen that, a century later, their organisation - now the award-winning Chemical Business Association (CBA) - would have such significant importance within the UK, and indeed international, chemical supply chain. Today, CBA remains unwaveringly devoted to offering steadfast support not only to the industry itself but to all those who depend on it.
The chemical supply chain has seen many changes since the merger of the British Chemical Trade Association and the Chemical and Dyestuffs Traders Association 100 years ago. Over the past century, there have been radical changes in the types of chemicals
being used and the ways in which they are produced, transported and processed. It is also a period in which the chemical supply chain has experienced numerous economic, political and societal challenges.
Over that time, CBA has continually supported its members and striven to bring improvements to the industry. It has helped members improve health and safety, survive the impact of conflicts from World War II to the war in Ukraine, deal with the effects of economic recessions, cope with the political and regulatory turmoil of the Cold War, not to mention Brexit, and adapt to the challenges as well as opportunities of globalisation and technological advancements.
As the decades passed, the organisation’s valued services have had a sustained and
growing relevance to the chemical supply chain. By continually expanding, adapting and widening its range of services, it has seen its membership diversify and has twice changed its name to reflect this. In 1980 it became the British Chemical Distributors’ and Traders’ Association and then in 2006 the Chemical Business Association.
Testament to its ongoing momentum and relevance within the industry is that, while its membership continues to grow and expand, with 23 new members in 2022 alone, this 100-year-old association still has some of its founding members. This includes Blagden Speciality Chemicals, whose director Giles Turton attended the ‘Floggers Lunch’ in April where he was elected to join the CBA Council at the AGM which preceded it. Today, CBA’s distributor, logistics and associate membership base employs more than 10,000 people and makes 2.25 million deliveries a year, handles over 27m tonnes of chemicals, and contributes more than £4bn to the UK economy annually.
As it enters its 100th year, CBA and its work remain vital to the success of the chemical supply chain. As an established organisation that represents member and supply chain interests at the highest levels, both in the UK
and overseas, CBA is in the best position to respond effectively to widening membership, changing markets and new challenges.
While its founding aims in 1923 were to deal with the shortage of specific chemicals and promote the cause of free trade, both of which are still a focus today, its objectives nowadays are significantly wider. These include supporting and developing the ability of its members to trade nationally and globally in an economically viable and sustainable environment. To this end, CBA regularly works with the government, partners and the industry in its contribution towards legislation.
CBA and its members’ extensive experience allows them to provide guidance and support to governments, executive bodies and stakeholders in the UK, the EU, and globally. In the UK, the association collaborates closely with the government, offering advice and support to departments such as the Department for Transport (DfT) and the Department for Business and Trade (DBT), as well as to organisations such as the Health and Safety Executive (HSE).
CBA’s interventions have greatly benefited the industry. In recent years, its leadership in addressing the HGV driver shortage resulted in HGV drivers being added to the Shortage Occupation List. Additionally, its lobbying efforts on the practicality, workability, duplication and costs of UK REACH led to DEFRA’s announcement that it would consult on extending deadlines for UK REACH and
develop a new data model that would be workable, affordable and provide appropriate levels of data to support UK REACH registrations.
Aside from industry-wide lobbying, CBA also provides advocacy services, representing businesses in Whitehall, Westminster and Brussels. It has effective working relationships with regulators and legislators in Brussels and actively participates in the International Chemical Trade Association (ICTA) and the Organisation for the Prohibition of Chemical Weapons (OPCW). Meanwhile, its leadership on initiatives such as Cogent Skills, Responsible Care, Carbon Literacy, Business of Science – Learn. Connect. Develop, and Generation Logistics show CBA’s broad influence throughout the supply chain and wider industry.
Considering the chemical supply chain’s vital importance to both the UK’s economy and society in general, and to ensure that it has the people and skills necessary to continue in this role in future, CBA launched its Future Council in 2022 to showcase the chemical supply chain, positively change the perception of the industry, and encourage new talent into the industry. This has been complemented by the recent launch of the Association’s ‘People and Skills Hub’, which will support the training needs of the industry while encouraging companies of all sizes to
come together to ensure the chemical industry attracts and retains the diverse and inclusive talent pool required to maintain its vital position.
Additionally, having broadened its role in recent years, CBA is today regarded as an industry thought leader and problem solver. Its innovative intermediate bulk container (IBC) solution for the transport of ammonia provided an effective solution to a significant regulatory issue and has enabled the chemical supply chain to continue its operations and avoid serious problems regarding the transport of ammonia solution in higher concentrations. CBA is also an advocate for the safe movement of a hazardous chemicals, which demonstrates its commitment not only to the chemical industry but to the wider society.
Beyond representing its members’ interests, CBA also plays an important role in supporting them through current and forthcoming challenges. This includes a helpdesk that members can telephone for assistance, networking events and a range of courses designed to provide legislative support, training and guidance, covering topics such as compliance, regulation and best practice. It also has fully qualified Dangerous Goods Safety Advisers (DGSA) on its staff and conducts seminars for organisations that need to appoint or have recently appointed a DGSA under the Carriage of Dangerous Goods by Road Regulations (CDG).
In addition, CBA is helping its members understand and manage post-Brexit transport in the EU in light of the changing import and export rules while assisting those facing shortages due to the Ukraine war to find alternative suppliers.
As a long-standing and firmly established association that is widely recognised for its expertise, support and contribution to the industry, CBA is in the strongest position possible to help its members and raise the profile of the chemical supply chain, both nationally and globally. And with a century under its belt, it is ready for the challenges of the next one hundred years.
www.chemical.org.uk
Univar Solutions has reported downbeat first-quarter results, with consolidated net sales down 6.9 per cent year-on-year at $2.68bn and adjusted EBITDA down 32.5 per cent at $215.4m. Net income fell from $180.8m in first quarter 2022 to $83.1m. The company cites weakening demand and higher cost input inflation, partially offset by pricing discipline.
Despite the poor figures, president/CEO David Jukes remains upbeat, saying: “Over the past three years, we have successfully executed and delivered on our strategic plan, which has enabled us to successfully navigate the dynamic macroeconomic environment. We have continued to put the customer at the centre of all we do whilst solidifying our market leadership in North America. This gives us confidence in our ability to navigate uncertain market conditions, while fulfilling our purpose and commitments to our people and communities. We remain focused on delivering our business strategy and leveraging our global strengths in Ingredients and Specialties.”
The proposed takeover of Univar Solutions by Apollo Global Management, announced in March, is proceeding and is expected to close in the second half, subject to customary closing conditions.
www.univarsolutions.com
Algol Group has reported solid growth in its financial results for 2022, with net sales rising 54 per cent to €233m, EBITDA ahead by 53 per cent at €14.4m and post-tax profit of €7.8m, compared to €5.5m in 2021. This improvement was due to strong demand and especially higher raw material prices. The discontinuation of business operations in Russia, however, had a somewhat negative impact on earnings. Most group companies
improved their results compared to 2021 and also surpassed their budgeted target.
The outlook, however, is difficult to predict, though Algol says its broad coverage of different regions and product sectors will provide some stability in a time of great uncertainty.
Algol has also combined its Baltics business unit and its Ukraine & Belarus business unit, effective 1 March, with Juris Avotins appointed director of the enlarged unit. www.algolchemials.com
2M Group of Companies has acquired Laurichem, which represents producers of specialty ingredients for the cosmetics and hygiene products markets in the US Midwest. The acquisition provides a platform for 2M’s expansion into the US. Laurichem was founded by Laura Moehlman, who will stay on as president of the renamed 2M Laurichem, with Shawn Murphy remaining as global technical director.
“I am excited that Laura and Shawn are joining our international team,” says Mottie Kessler OBE, chairman/CEO of 2M Group. “We are focused on quality, knowledge and
excellent team work. We add value along the supply chain to producers and consumers utilising our expertise and application laboratories. When we acquire a business, we work with the local team, helping to grow the brand and relationships they have created.”
2M has also acquired Laboratorios Prady Normapiel, a Spanish manufacturer of perfumes and cosmetics for the personal care industry. Prady’s expertise and facilities complement those of Chemir, a Spanish distributor of personal care ingredients in Barcelona, that joined the 2M Group of Companies in December 2022. The acquisition of Prady is part of the 2M Group’s ongoing growth strategy, which includes expanding its global reach and acquiring companies that complement its existing product portfolio.
2M Group’s SampleRite, an industry-leading sample management expert for the chemical industry, has established a new facility in Wendelstein, just south of Nürnberg in southern Germany. The new site will focus on providing sample management, stock handling, refilling and storage of dangerous and non-dangerous goods for an extensive range of products and will enable SampleRite to
further expand and offer services within mainland Europe. The new German site will also act as the point of contact for chemical manufacturers and distributors across the UK, Europe and China.
www.2m-holdings.com
Tennants Distribution has acquired the Brockley Group, a family-owned business that distributes and supplies chemicals to a diverse customer base in Ireland, including the pharmaceutical, personal and animal healthcare, agricultural and medical device sectors.
‘We are pleased to welcome the Brockley Group into the Tennant Group of companies, a move which will support Brockley’s continued growth and increase the range of products and services that Tennants offers in Ireland,” says Tim Griffiths, managing director of Tennants, which has been active in Ireland for more than 200 years.
www.tennantsdistribution.com
Barentz International, in collaboration with its joint venture partner Tovani Benzaquen, has
expanded its activities in South America with the acquisition of Metachem Industrial e Comercial and its affiliate Chemtra Comercial Importação e Exportação, considered one of the main Brazilian distributors of supplies and solutions for the chemical segment. Metachem leads a Brazilian group that distributes raw materials an ingredients in South America, with a focus on industrial materials, paints and adhesives.
“The expertise, combined with Metachem’s portfolio, will strengthen our already consolidated offer in the Brazilian market,” says Hidde van der Wal, CEO of Barentz. “This presents new opportunities in the South American region, mainly focused on the performance materials segment and further connects our South American and North American markets. This is in line with Barentz’s aspirations and continued growth strategy.”
www.barentz.com
Safic-Alcan has opened a new subsidiary office in Nairobi, Kenya, expanding its presence in Africa and filling a big gap between its existing regional hubs in South Africa and Egypt. The
new office will serve the East African market, including Kenya, Tanzania, Uganda and DR Congo. Safic-Alcan has appointed Philip Kamay as development director, East Africa to lead its efforts in the regional market.
“We are thrilled to be expanding our presence in Africa, a continent that is becoming increasingly important in the formulating industry,” says Yann Lissillour, CEO of the Safic-Alcan group. “By investing in Africa, we are catering to a consumer market of 250 million people in Eastern Africa, and we are confident that our new subsidiary in Kenya will help us better serve our customers and grow our business in the region.”
Within days of the opening of the new office, Safic-Alcan announced an expansion of its distribution agreement with Orion Engineered Carbons to cover East Africa as well as Europe and South Africa.
www.safic-alcan.com
KRAHN EXTENDS SHRIEVE DEAL
Krahn Chemie has extended its partnership with Shrieve, for which it already distributes specialty chemicals to the lubricants market in Italy, to cover the whole of Europe and Israel. Andrew Lamb, head of lubricants business at Krahn, says the move will help enhance Shrieve’s existing footprint in Europe and bring its specialty products closer to Krahn’s customers.
“Shrieve has worked with the Krahn team for over 16 years, and this long-standing relationship has allowed us to see for ourselves the exemplary customer-first approach Krahn adopts; an approach that mirrors our own company values,” says Mark Burnett, Shrieve’s general manager, EMEA. “The partnership will allow us to expand our specialty products to new and existing territories, better serving our customers with the deep Krahn knowledge of local markets and sales teams.”
www.krahn.eu
INVESTMENTS • VOPAK HAS SET OUT ITS PRIORITIES AS IT SEEKS TO MAINTAIN ITS MARKET POSITION DURING THE ENERGY TRANSITION. SOME RECENT DECISIONS ILLUSTRATE WHAT THAT MEANS
VOPAK HAS REPORTED strong first quarter results, with revenues up 11.6 per cent year-on-year at €361.8m and EBITDA ahead by 16.8 per cent at €249.0m. Net profit came in at €103.1m, compared to €74.7m in first quarter 2022.
“We continue to make good progress on our strategy to improve our financial and sustainability performance, to grow our base in industrial and gas terminals, and to accelerate towards new energies and sustainable feedstocks,” says CEO Dick Richelle. “The start to the year demonstrates the strength of our organisation and diversity of our infrastructure portfolio across geographies, energy and manufacturing markets and customers. I am pleased to increase our outlook for the year 2023, supported by favourable storage demand and
cost management. We will continue to deliver on our strategic goals while at the same time keeping our disciplined approach towards capital allocation.”
Those comments set the pattern for Vopak’s investment and divestment strategy, which will expand its activities in gases and renewable fuels, as well as at what it terms ‘industrial’ terminals – those that are closely integrated with industrial hubs.
In practical terms, that means investing in projects such as the Aegis Vopak joint venture in India, where some €95m is to be invested in expanding storage capacity at four existing locations – Haldia, Mangalore and Pipavav –by 87,000 m3 for liquid products and 262,000 m3 for LPG. In the Netherlands, Vopak and Gasunie have agreed in principle for Vopak to acquire 50 per cent of the shares in
EemsEnergyTerminal, a new floating LNG terminal in Eemhsaven that opened for business in September 2022 to help enhance gas supply security in Europe. The two companies also plan to develop the site further to create an import hub for green hydrogen. The Gate LNG terminal in Rotterdam, another project in which Vopak and Gasunie are working together, is also looking to expand offtake capacity through the addition of a fourth storage tank; the partners intend to make a final investment decision by September 2023.
Bridging the divide between ‘industrial’ terminals and the energy transition, Vopak has also agreed to acquire a prime plot of land in the heart of the petrochemical cluster in Antwerp, with deepwater access and hinterland connectivity by river, road, rail and pipeline. Vopak plans to redevelop the land, formerly occupied by Gunvor, to make a positive contribution to the decarbonisation of the industrial cluster and, in collaboration with the Port of Antwerp-Bruges, to discuss the joint development of a new green energy hub.
Since the announcement of its first quarter results in late April, further plans for updating Vopak’s terminal portfolio have come forward.
In Canada, where Vopak already has a 30 per cent interest in the Ridley Island Propane Export Terminal in British Columbia, it has agreed with its partner AltaGas to further evaluate the development of a large-scale LPG and bulk liquids terminal on Ridley Island. This proposed Ridley Island Energy Export Facility (REEF), to be a 50/50 joint venture, will sit adjacent to RIPET, which was commissioned in 2019, and will be used to facilitate the export of LPGs, methanol and other bulk liquids. Key approvals and permits are already in place for the construction of storage tanks, jetties and other infrastructure on the 77-ha site. AltaGas has already executed a long-term commercial agreement to take all of the first-phase capacity for LPG exports.
Front-end engineering and design (FEED) is already underway and the partners aim to complete this by the end of the year, following which a final investment decision will be made.
“We are excited to build on our success with AltaGas in Prince Rupert,” says Richelle. “Our goal is to create together with partners high
quality critical infrastructure for vital products. The strategic location of Prince Rupert, with the shortest shipping distances between North America and Asia, has the potential to increase the trade between Canada and the Asia Pacific region. REEF fits very well within Vopak’s strategic pillar to grow in gas and industrial infrastructure. We look forward to further collaboration with First Nations rights holders and key stakeholders to make this project a reality.”
Randy Crawford, president/CEO of AltaGas, adds: “Canada has a structural advantage in delivering LPGs into Asia from its world class resources and through the shortest shipping time and lowest maritime emissions footprint. AltaGas delivers more than 12 per cent of Japan’s propane and 12 per cent of South Korea’s LPG imports through connecting our valued upstream customers with key downstream markets in Asia. REEF fits our corporate strategy of operating long-life infrastructure assets that connect customers and markets and provide resilient and durable value for our stakeholders.”
Back in the Netherlands, Vopak commissioned 16 new storage tanks at its Vlaardingen terminal in Rotterdam in early May, adding 64,000 m3 of capacity for waste-based feedstocks for the production of biodiesel and sustainable aviation fuel (SAF) under a long-term deal with Shell, which will use the feedstocks at its new biorefinery.
Vopak Terminal Vlaardingen is strategically located in the Port of Rotterdam and is well-connected for logistics via vessels, barges, trucks, and trains. The terminal has extensive experience in storing products such as used cooking oil and tallow. Work began on the €90m project to repurpose part of the terminal for waste-based feedstocks in 2021. Vopak says the project is in line with its strategic goal “to accelerate towards new energy by developing infrastructure solutions that support customers and society in decarbonisation”.
Vopak has also agreed to sell its terminal in Savannah, Georgia to BWC Terminals for some $106m. The 250,000-m3 terminal is mainly used for the storage of vegoils, asphalt and specialty chemicals. Vopak expects to book a net gain of some $80m in its second quarter figures.
“Although within Vopak we will surely miss our colleagues at the Savannah terminal, we are convinced that our customers and colleagues will be well served by becoming part of BWC Terminals’ network in North America,” says Maria Ciliberti, division president, Vopak Americas. “We would like to thank our Savannah colleagues and customers for their trust and contribution to Vopak and will work together towards a closing and smooth transfer to BWC Terminals.”
Michiel Gilsing, Vopak’s CFO, adds:
“The divestment of the Savannah chemical terminal is in line with our strategic goals to improve the financial performance of the portfolio, grow Vopak’s footprint in gas and industrial terminals and accelerate towards new energies. We remain committed to actively manage our portfolio towards infrastructure investments that support the long-term cash flow profile and return ambitions of the company.”
www.vopak.com
AMMONIA • EUROPE’S EMERGING APPETITE FOR HYDROGEN TO FUEL THE ENERGY TRANSITION WILL CALL FOR MASSIVE IMPORTS OF GREEN AMMONIA. KOOLE TERMINALS IS ON THE CASE
KOOLE TERMINALS CONTINUES to develop its European terminalling network to cope with the changing demands of the fuels sector as the energy transition progresses. It is expanding on the agreement signed with Horisont Energi last year to receive clean ammonia produced and shipped from Horisont’s clean ammonia plant in Finnmark, in the north of Norway, to a new facility in Rotterdam.
A fundamental part of that agreement is to establish an import terminal in Rotterdam for the storage and handling of clean ammonia for onward distribution, both inland within continental Europe and further afield by sea. The terminal infrastructure will be built, owned and operated by Koole, with Horisont Energi being one of the launching customers.
The overall concept also envisages the establishment of ammonia bunkering capabilities in Rotterdam, a network of import terminals across various European ports for the storage and handling of ammonia, and the development of a full logistics value chain offering one-stop-shop solutions for ammonia offtakers, including such services as shipping, storage, pipeline connection, onward logistics by railcar or truck and potential cracking into hydrogen.
More recently, Koole has signed a letter of intent with Hyphen Hydrogen Energy, a Namibia-based green hydrogen development company that is to develop a vertically integrated gigawatt-scale green hydrogen project within the Tsau //Khaeb National Park. Under the agreement, Hyphen will use Koole’s
Rotterdam terminal as an entry point for green ammonia for its customers in western Europe, where it is looking to supply up to 750,000 tpa green ammonia. Total output from the plant is expected to be 1m tonnes per year by the end of 2027 and up to 2m tonnes by 2029.
“This agreement represents another key milestone in our ambition of enabling Namibia’s rise as a global leader in green hydrogen production,” says Hyphen CEO Marco Raffinetti. “The Port of Rotterdam is a critical hub servicing north-western Europe and has moved rapidly to support the establishment of new green hydrogen import capacity to facilitate this region’s energy transition, with import capacity and access to markets being a key constraint in the supply chain.
“Koole Terminals is one of the most advanced import terminals under development and we look forward to working with Koole Terminals and the Port of Rotterdam to meet first supply of ammonia from our project into Europe by early 2028,” Raffinetti adds.
John Kraakman, CEO of Koole Terminals, says: ”We are pleased to work with Hyphen to become a launching customer of our planned
Port of Rotterdam import terminal for ammonia. This cooperation will allow us to further scale-up the multi-million tonne facility. With our current and planned infrastructure, terminals, modalities, and integrated solutions, we play a leading role in facilitating the energy transition.”
While these supply projects involve the movement of green ammonia to Rotterdam, it is actually hydrogen that consumers will be interested in. To that end, Koole is taking part in a consortium, led by the Port of Rotterdam, to investigate the potential to set up a large-scale ammonia cracker in the port to convert imported ammonia back into hydrogen, with an output capacity of 1m tonnes per year.
“Europe will need large amounts of hydrogen to reach its climate objectives and a significant share of this can be imported via the Port of Rotterdam,” said Allard Castelein,
CEO of the Port of Rotterdam, when the project was announced at the end of 2022. “Ammonia is one of the most efficient ways to transport hydrogen and, by establishing one central ammonia cracker, we can save time, space and resources to enable the import of a million tons of hydrogen per year.”
Making a link into the hinterland will also be a crucial element in the success of the ammonia supply chain and Koole is also working to help develop that. Last month it signed a memorandum of understanding with Duisburger Hafen regarding the development of a tank farm for liquid renewable fuels and raw materials such as ammonia at the Rheinkai-Nord in Hochfeld in the Port of Duisburg, which has the ambition to become a central hydrogen hub for the entire RhineRuhr industrial region.
“For the energy turnaround to succeed, Germany’s industry is dependent on the rapid expansion of a high-performance
infrastructure for renewable energies such as hydrogen – and we are providing it,” says Markus Bangen, CEO of duisport. “The topic of hydrogen has long played a central role for Duisburg and is also the key to a sustainable future for logistics,” adds Alexander Garbar, head of corporate development. “Where coal was once stored and handled in the outer harbour, green products will be moved in the future. This is structural change par excellence.”
“With our current and planned infrastructure, terminals, modalities, and integrated solutions, we play a leading role in facilitating the energy transition,” says Tamme Mekkes, business development director at Koole Terminals. “We are pleased with the opportunity to develop a terminal for sustainable fuels and feedstocks in Duisburg at a pivotal location in Germany. This will allow us to serve existing and new customers even better, going into this new era.” koole.com
At Exolum we see the energy transition as an opportunity to expand our horizons. A chance to diversify our business and meet the challenges of climate change and our customers’ businesses. We have adopted Sustainable Development Goals (SDGs) to touch every aspect of our business and made a commitment to minimising our impact on the environment by striving to use energy resources and raw materials e ciently.
Europe’s leading bulk liquid logistics provider
supply chains for new sustainable energy products, such as ammonia and green ethanol. The company says it will harness its privileged position at many ports and will support the development and establishment of new international supply chains.
In addition, it has begun offering a comprehensive service for the transport and storage of hydrogen, initially over short distances from production centres to nearby consumers. For instance, it will soon complete construction of the first production and dispatch plant for green hydrogen for use in transport in the Madrid region, Green Hydrogenares, which will cover the whole value chain and have a start-up capacity of some 60 tonnes of green hydrogen per year. It is also planning a network of hydrogen refuelling stations for use by heavy goods vehicles and buses.
Elsewhere, it is participating in R&D consortia looking at the storage and transport of hydrogen in liquid form in liquid organic hydrogen carriers (LOHCs), the storage of energy in liquid batteries, and carbon capture, utilisation and storage (CCUS).
EXOLUM, THE SPAIN-BASED bulk liquids storage terminal operator, arrived in the business from an unusual angle. It originally ran the national fuel distribution network, and it retains an important role in the supply of aviation fuel - not just in its home market. As such, it has a unique perspective on business conditions and the potential impact of the energy transition.
Exolum reports that 2022 delivered a “considerable recovery” compared to the two previous years, which were greatly impacted by the outcome of the Covid pandemic. Last year saw the lifting of restrictions on mobility, with a recovery in the aviation sector as well as more demand for biofuels services. These contributed to a 13.2 per cent increase in EBITDA compared to 2021, to reach €533m, with operating income up 10.7 per cent to €944m.
Exolum is already involved in projects intended to develop the transport and storage infrastructures required for the sustainable
fuels and chemical products of the future. The company’s next projects are focused on promoting latest generation biofuels produced from waste, such as sustainable aviation fuel (SAF).
Exolum aims to maintain its position as a leading independent aviation logistics provider – the sector already represents some 32 per cent of its income – and is targeting further growth by expanding airport operations around the world. More broadly, Exolum plans to store, transport and manage the waste and raw materials needed as feedstock for sustainable fuels, which also contribute to the circular economy. Furthermore, it will provide new logistics solutions for the chemical industry, which has started to use new, more sustainable raw materials in its production processes.
Exolum is also committed to becoming a relevant player in the development of the
Exolum has also defined a new ESG Master Plan covering the period 2022 to 2026. This aims to define a common framework for the coming years by responding to internal ambition levels, the expectations of stakeholders and the current energy context. The plan is aligned with the UN Sustainable Development Goals and the principles of the Global Compact, to which Exolum is a signatory.
The ESG Master Plan includes business diversification within the energy transition; transformation of the internal corporate culture; excellence in safety and zero environmental damage; collaboration with stakeholders; and a focus on corporate governance.
In order to comply with this plan, Exolum has established objectives across all areas, such as a higher percentage of women in middle and top management and the reduction of its carbon footprint, with the aim of becoming a net zero company by 2040. exolum.com
STRATEGY • EXOLUM SEES PLENTY OF OPPORTUNITY TO GROW
AS A RESULT OF THE ENERGY TRANSITION AND, AS IT LOOKS BACK ON A SUCCESSFUL 2022, HAD LAID OUT ITS PRIORITIES
Kinder Morgan has placed the new renewable feedstock storage and logistics hub project at its Harvey terminal in Louisiana into service. The hub, a joint project with Neste, will handle used cooking oil and other feedstocks to be used in the manufacture of renewable diesel, sustainable aviation fuel (SAF) and plastics. Kinder Morgan has made enhancements to the rail, truck and marine infrastructure at the site to meet the modal flexibility requirements of Neste’s feedstock supply chain.
“Neste is committed to creating a healthier planet for our children. We cannot do it alone, however,” says Chris Cooper, president of Neste US. “We’re elated to see the Harvey Terminal conversion project come to fruition, and we look forward to ongoing collaboration with Kinder Morgan.” John Schlosser, president of terminals at Kinder Morgan, adds: “This project is a great example of how Kinder Morgan’s vast network of existing terminal infrastructure can be swiftly converted to meet the growing needs of the renewable fuels market in the US.”
Kinder Morgan has meanwhile reported first quarter revenues of $3.89bn, down from the $4.29bn recorded for the same period last year; operating income, however, rose by 16.6 per cent to $1.19bn and net income edged ahead to $703m. “Our extensive and interconnected network continued to generate strong earnings this quarter, particularly in our Natural Gas Pipelines and Terminals business segments,” says CEO Steve Kean.
The Terminals unit saw strong performance in its bulk operations, while the liquids side was up modestly after some growth projects were put into service and utilisation increased at the Carteret refined products storage terminal in New Jersey.
Kinder Morgan has also started engineering and design work on a planned $52m project to create a renewable diesel and SAF feedstock
storage and logistics facility at its Geismar River Terminal in Louisiana; the new capacity, supported by a long-term customer commitment, is expected to be in service in fourth quarter 2024.
www.kindermorgan.com
ADPO has begun work on a new tank pit at its site in Kallo, Belgium (below), where it will install 23 new storage tanks with a total capacity of 8,100 m3; the stainless steel tanks, four of 600 m3 and the remainder of 300 m3, will be used for the storage of liquid fine chemicals for use in the healthcare and life sciences markets. The new tank pit TP 26, due in service early in 2024, is being built on the plot of a former warehouse, now demolished.
“The demand for extra storage is high due to the increased import traffic,” says Filip De Dycker, managing director of ADPO. “The high energy prices and wage costs in Europe have put the European process industry at a competitive disadvantage. The production cost
is currently cheaper in America, Asia and the Middle East. Because the raw materials –which are normally transported directly between the factory and the downstream user in Europe – are now mainly imported, additional tank storage is required.”
www.adpo.com
Ultrapar Participações, through its subsidiary Ultracargo Logística, has agreed to acquire a 50 per cent share in Opla Logística Avançada from Copersucar, Opla operates Brazil’s largest independent ethanol terminal, a 180,000-m3 facility located in Paulínia, São Paulo. The remaining 50 per cent is held by BP Biofuels Brazil Investments.
The acquisition of this stake in Opla marks Ultracargo’s entry into the inland liquid bulk storage and logistics segment, integrated with port terminals, in line with its growth plan. Opla is a strategic asset in the ethanol and derivatives distribution chain, with high growth potential and value creation by opening the
terminal to third parties and relevant productivity gains in the use of the asset, Ultrapar says. www.ultracargo.com.br
Enterprise Products Partners has reported first quarter operating income of $1.73bn, up from $1.67bn in first quarter 2021, with net income up 6.8 per cent at $1.42bn. “Enterprise reported a solid first quarter as we benefited from record pipeline transportation and fee-based natural gas processing volumes and near record marine terminal volumes,” says AJ ‘Jim’ ,Teague, co-CEO of Enterprise’s general partner.
“In March, our marine terminals handled a record 2.3 mbd of NGL, crude oil, refined products and petrochemical exports,” he adds. “Our NGL and natural gas pipeline businesses, as well as our refined products marketing, natural gas marketing and octane enhancement activities reported increased gross operating margin for the first quarter of 2023 compared to the first quarter of last year.”
Gross operating margin from Enterprise Hydrocarbons Terminal increased by $24m compared to the first quarter of 2022, primarily due to a significant increase in LPG export volumes. The partnership’s Morgan’s Point Ethane Terminal reported a $13m increase in gross operating margin, primarily due to a 24 per cent increase in ethane export volumes for the first quarter of 2023. enterpriseproducts.com
NuStar Energy has reported strong firstquarter results, fuelled by firm volumes in its refined products and crude oil pipelines. Net income came in at $105.9m, compared to just $12.3m last year, despite a slight decline in total revenues from $409.9m to $393.9m. Overall costs were lower and NuStar also booked a
$41m gain relating to the monetisation of real estate at its corporate headquarters in San Antonio, Texas. The company plans to spend between $130m and $150m in strategic projects this year, including some $25m to expand its West Coast Renewable Fuels Network, which is performing well.
NuStar has also reached an agreement with OCI Global to transport ammonia on a new segment of its anhydrous ammonia pipeline network to connect with OCI’s production facility in Iowa. “We are seeing growing interest in lower carbon ammonia from many different companies and potential customers,” notes NuStar’s chairman/CEO Brad Barron. “In addition to the ‘greening’ of ammonia expanding the market domestically, international demand is also driving interest in ammonia export, which could drive additional utilisation of not only our ammonia [pipeline] system but also, potentially, our St James facility, which has dock capacity that could support ammonia export.”
www.nustarenergy.com
LBC Tank Terminals and Vitol have established a partnership to develop a supply
chain for pyrolysis oil in Rotterdam, strengthening both companies’ ambitions to be an integral part of Europe’s circular economy for years to come. The pyrolysis process involved the transformation of waste plastics at high temperatures, with the output being used in the production of new polymer or as a recycled carbon fuel. First deliveries are expected with the coming few weeks.
“As the petrochemical industry pursues more sustainable solutions, we are pleased to work together with LBC to generate a more integrated pyrolysis supply chain, and provide circular feedstocks to our petrochemical customers,” says Tom Baker, global head of naphtha trading at Vitol.
Frank Erkelens, CEO of LBC, adds: “As connected partner and integral part of Vitol’s supply chain, we are proud to leverage our expertise in efficient and responsible storage and handling for products that are shaping a more sustainable and circular economy. Together, we will continue to make significant progress in further driving the energy transition, and this partnership exemplifies our ambitions and shared commitment to a carbon-neutral future.”
www.lbctt.com
JUNE
Nor-Shipping
JUNE 6-9, OSLO
Biennial exhibition for the global maritime industry http://nor-shipping.com/
SIL Barcelona
JUNE 7-9, BARCELONA
Annual international logistics expo and congress
www.silbcn.com/en/index.html
IAFC Hazmat Conference
JUNE 7-11, BALTIMORE
Annual international event for response teams www.iafc.org/events/hazmat-conf
Multimodal 2023
JUNE 13-15, BIRMINGHAM
15th annual exhibition for the supply chain management and logistics sectors www.multimodal.org.uk/
VCA Dangerous Goods Seminar
JUNE 20, BIRMINGHAM
36th annual regulatory update conference www.vehicle-certification-agency.gov.uk/ dangerous-goods/dangerous-goods-seminar/
PGLC
JUNE 22-23, MARSEILLE
Third annual Petrochemical Global Logistics Convention www.pglc.biz
CO2 Shipping & Terminals
JUNE 27, LONDON
Second one-day event to discuss the emerging CO2 supply chain www.rivieramm.com/events/co2-shippingterminals-conference
JULY
LNG 2023
JULY 10-13, VANCOUVER
20th triennial global exhibition and conference on LNG http://lng2023.org
Chemical Warehousing Workshop
JULY 18, ONLINE/CREWE
One-day training workshop on the storage of chemicals in warehouses
www.chemical.org.uk/training-and-workshops/ chemical-warehousing-workshop-2/
Intermodal Asia
JULY 19-21, SHANGHAI
Annual exhibition for the Asian intermodal sector
www.intermodal-asia.com
AUGUST
ChemEdge
AUGUST 16-18, THE WOODLANDS
Conference for the North American chemical distribution sector www.nacd.com/education-meetings/ meetings/2023-chemedge/
PPC Fall Meeting
AUGUST 27-29, INDIANAPOLIS
Bi-annual meeting and tradeshow of the Petroleum Packaging Council www.ppcouncil.org/upcoming-meetings.php
AHMP National Conference
AUGUST 27-30, OMAHA
Annual meeting of the Alliance of Hazardous Materials Professionals
www.ahmpnet.org/events/EventDetails. aspx?id=1430442&group=
SEPTEMBER
Pumps & Valves Asia
AUGUST 30-SEPT 1, BANGKOK
Exhibition for the ASEAN pumps, valves and fittings sector
www.pumpsandvalves-asia.com
Gastech 2023
SEPTEMBER 5-8, SINGAPORE
International conference and trade show for the LNG and LPG industries
www.gastechevent.com
Labelmaster DG Symposium
SEPTEMBER 6-8, CHICAGO
16th annual Dangerous Goods Symposium hosted by Labelmaster www.labelmaster.com/symposium
FECC Congress
SEPTEMBER 11-13, SITGES
Annual meeting of the European Association of Chemical Distributors www.fecc-congress.com
Spillcon
SEPTEMBER 11-15, BRISBANE
Triennial Asia-Pacific oil spill prevention and preparedness conference www.spillcon.com/
CVSA Annual Conference
SEPTEMBER 17-21, GRAPEVINE, TX
Annual meeting of the Commercial Vehicle Safety Alliance
www.cvsa.org/events/cvsa-annual-conference-andexhibition/
Virginia Hazmat Conference
SEPTEMBER 18-22, NEWPORT NEWS
40th annual networking and training meeting sponsored by the Virginia Association of Hazardous Materials Response Specialists
www.virginiahazmat.org/annual-hazmat-conference/
TSA Conference & Exhibition
SEPTEMBER 21, COVENTRY
21st annual meeting of the UK Tank Storage Association
www.tankstorage.org.uk/conference-exhibition/
Ouray Transportation & Response Symposium
SEPTEMBER 24-27, DENVER
First symposium to spread technical knowledge on hazmat response www.ourayservices.com/trs2023
13/4/23 nr North Platte, truck hydroxyl- Two semi-trucks collided on I-80, one spilling dozens of plastics drums with ITCS-TRY4 hydroxylamine; Nebraska Nebraska, US amine some drums ruptured; traffic diverted off I-80 during response; one driver suffered minor injuries St Patrol
17/4/23 Epe, road tanker gasoline
Road tanker with 33,000 litres gasoline overturned, caught fire, seemingly after collision with armoured Vanguard Lagos, Nigeria vehicle at T-junction in Oko Osho; fire spread to other vehicles, nearby bush; no injuries reported
21/4/23 New London, road tanker heating oil Delivery tanker with home heating oil collided with car on Gold Star Memorial Bridge; fire broke out; some NBC Connecticut, US 2,200 gal (8.3 m3) oil spilled to Thames River; tanker driver died; thought car tyre suffered blowout
2/5/23 Marion, freight train phosphoric CSX employee discovered “moderate” leak of phosacid from piping in bottom of tank car in train stationary Marion Ohio, US acid in yard; two nearby homes evacuated; leak capped by fire dept and CSX crew; contaminated soil removed Star
Date Location Vessel Substance Details
11/4/23 Son Duong, Vigor SW hydrogen
Source
Three crew of Taiwanese general cargo ship were injured by inhaling hydrogen sulfide gas while they were FleetMon Vietnam sulfide opening cargo hatches prior to cargo discharge; one died in hospital, another seriously hurt
17/4/23 Riau archipelago, Tiger Sea unknown
Fire broke out in engine room of tanker (905 dwt, 1994), spread to deck; explosion killed one crew, two Jakarta Indonesia others missing; tanker, from Johor, was at anchor at the time; local fishermen picked up two survivors Post
20/4/23 off Vancouver I, truck diesel Tug Risco Warrior was towing barge to Hardwicke Island when truck with 4,500 gal (17 m3) diesel rolled Maritime BC, Canada off barge in high winds; ROV located truck next day; divers patched leaks; salvors recovered truck Executive
1/5/23 off Singapore Pablo
Fire spread along deck of Aframax tanker (97,000 dwt, 1997) at anchor after leaving China for UAE; 25 Maritime crew rescued by nearby vessels, three missing; tanker thought to be in ballast, possibly engaged in grey trades Executive
2/5/23 La Coruña, Alpha coal Cargo of coal self-ignited in hold of Capesize bulker (180,000 dwt, 2016) at Langosteira harbour; crew, FleetMon Spain Optimism teams extinguished fire in an hour; most of cargo had already been discharged
7/4/23 Cameron, pipeline crude oil Between 25 bbl and 100 bbl crude oil spilled from West Cameron Well #2 flowline to marshy area; Creole NOAA Louisiana, US Operating reported two ruptures on 10-inch line, which was shut in after leak was detected
15/4/23 La Pampilla, oil refinery oil Oil spill spotted during routine inspection of offshore mooring buoy at Repsol refinery; sheen covered 300 m2; Bloomberg El Callao, Peru Repsol denied spill came from buoy or refinery and may have been from passing fishing boat
15/4/23 Brunswick, chemical resin
Major fire broke out at Pinova plant; dense black smoke prompted shelter-in-place order, some evacuations; Fox News Georgia, US plant fire was extinguished in two hours but later reignited; cause still under investigation
17/4/23 Wood River, ethanol ethanol
One worker killed, four injured by explosion at Green Plains ethanol plant during routine maintenance and Lincoln Nebraska, US plant repairs to stillage tank; three of those hurt were contractors; OSHA opened investigation J’l Star
25/4/23 Lemont, oil refinery asphalt
One worker killed, one injured by explosion at Seneca Petroleum refinery, thought to be in asphalt tank; AP Illinois, US several other tanks were damaged in blast; no danger to public; investigations underway
28/4/23 Sevastopol, fuel depot fuels
Major fire broke out in fuel depot in Russian-occupied port, destroying ten storage tanks with 40,000 t fuel; Maritime Crimea, Russia thought that fire was caused by Ukrainian drone attack; depot thought to supply Russian Black Sea fleet Executive
1/5/23 Liaocheng, chemical hydrogen
Five people killed, one missing, one injured by explosion in hydrogen peroxide unit at Sinochem’s Reuters Shandong, China plant peroxide Luxi Chemical plant; fire extinguished; cause under investigation
1/5/23 Brazi, oil refinery oil
Three workers injured, two seriously, by fire at OMV Petrom’s Petrobrazi refinery early in six-week turnaround Romania Prahova, Romania programme; fire was extinguished by refinery’s own response team; further work suspended Insider
4/5/23 Newburyport, pharmaceutical unknown
One worker killed, four injured by “violent” explosion at Seqens pharmaceutical plant that severely WHDH Massachusetts, US plant damaged building; offsite impact limited; site said to have poor safety record
5/5/23 Deer Park, chemical gasoil
Fire broke out in olefins unit at Shell plant, fed by gasoil; burned for three days; no serious injuries; massive Big News Texas, US plant quantity of contaminated firefighting water was discharged to Houston Ship Channel during response Network
POSED BY AMMONIUM NITRATE
THE UK P&I Club has published a revised edition of its book Carefully to Carry, which is the definitive guide to the safe carriage, handling and storage of cargo. The book was last published in 2018, with the new edition reflecting recent regulatory changes and best practices in the shipping industry. Some of the amendments reflect changes in the IMSBC Code, particularly regarding those bulk cargoes that may experience liquefaction during transport, while a new Chapter 11 in Part 2 covers fertilisers and issues related to ammonium nitrate cargoes. Also added are a new sub-section on petroleum coke cargoes and new chapters on hold preparation and cleaning.
“The latest book reflects the Club’s commitment to providing the most up-to-date advice and guidance to our members,” says Stuart Edmonston, loss prevention director at the UK P&I Club. “The success of previous editions underscores the importance of this
comprehensive guide in ensuring safe and efficient cargo transportation. We’re confident that the latest release will continue to be an invaluable resource for the industry.”
The Club celebrated the launch of the new edition with an in-person event held this past 27 April at the Yacht Club of Greece in Piraeus where Stuart Edmonston, Sean Geraghty, the Club’s regional director for Greece, and Dimitris Fafalios, chairman of the International Association of Dry Cargo Shipowners (Intercargo), discussed the latest updates with a diverse audience that included members of the Club, local brokers, classification societies, flag registries and members of the media.
Carefully to Carry is an essential guide to the safe carriage, loading and storage of cargo that encapsulates the full range of potential issues and dangers around the transporting of
bulk cargoes, from the characteristics and risks inherent in specific goods, hold preparation and hatch covers, to best practice when loading and unloading. A near exhaustive range of cargoes are covered within the guide, including timber, gases, grain, steel and other metals, bulk goods, refrigerated goods, liquid bulk cargoes, packaged cargoes and more. Use of this book will assist in reducing both the possibility of expensive cargo damage and the number of tragic incidents and personal injuries that unfortunately continue to occur.
“The 2023 consolidated edition of the UK P&I Club’s Carefully to Carry represents over 60 years’ worth of experience from several generations of international cargo experts together with claims and loss prevention specialists at one of the world’s leading P&I clubs,” says Fafalios. “The first ‘consolidated edition’ appeared in 2018 and this 2023 edition marks the first of what we predict will be a long-running series of periodic updates of this definitive best practice guide on the carriage, loading and stowage of most types of seaborne cargo. Long may it continue.”
The 2023 edition of Carefully to Carry is provided free of charge to members of the UK P&I Club and is available for others to buy via Witherbys at https://shop.witherbys.com/ carefully-to-carry-consolidated-edition-2023/. For more information on the activities of the Club, go to www.ukpandi.com.
DRY CARGO • THE DRY BULK SHIPPING SAFETY BIBLE, CAREFULLY TO CARRY, HAS BEEN REVISED AND UPDATED TO REFLECT RECENT REGULATORY CHANGES AND THE HAZARDS
SCRAP • IT IS FAR FROM UNUSUAL FOR BULK LOADS OF METAL SCRAP TO CATCH FIRE BUT, WHEN IT HAPPENS ON A SHIP AFLOAT, IT CAN CAUSE MAJOR PROBLEMS. NTSB IS HIGHLIGHTING THE ISSUES
A PERSISTENT FIRE aboard a barge in Delaware Bay in May 2022 has raised concerns over the carriage of scrap metal, especially if the consignment is contaminated with lithium batteries or other potential ignition sources. The US National Transportation Safety Board (NTSB) notes that, while scrap metal is typically nonhazardous and poses a low fire risk, there have nonetheless been several recent fires, including one in a shoreside pile in Newark, New Jersey in January 2022.
NTSB is particularly keen to highlight the potential of hidden hazardous materials to start or feed a fire. Even with supplier acceptance agreements and quality assurance personnel visually inspecting scrap metal, metallic and non-metallic hazardous materials are often present within shoreside
scrap metal piles and could inadvertently be loaded onto vessels, the Board says. These often flammable materials elevate the fire risk and can lead to intense fires. Once scrap metal is loaded onto a barge, it is difficult for a towing vessel crew to visually inspect the cargo while underway.
To minimise the risk of fire, qualified cargo-surveying personnel can assist the vessel’s captain before and during loading operations to limit the presence of hazardous, combustible material in scrap metal. Thermal imagery is also an effective tool in identifying hot spots in scrap metal cargo at shoreside facilities, NTSB says.
The event that prompted NTSB’s keen interest in the matter was a persistent fire that broke
out on a barge being towed by the tug Daisy Mae, heading north in Delaware Bay on 23 May 2022. The fire burned for 26 hours until it was finally extinguished by fire boats. While there were no injuries and no pollution was reported, damage to the barge was valued at some $7m.
The tug was owned by Coeymans Marine Towing (CMT), which also owned the 300-foot (91-m) deck barge, though this was on bareboat charter to an affiliate of Eastern Metal Recycling (EMR); at the time of the fire, the cargo was on the way to EMR’s facility in Camden, New Jersey. The barge had been loaded at EMR’s Newark facility with more than 7,050 tonnes of ‘shredder feed’, a low grade of ferrous scrap metal cconsisting of different metal scraps. This could include end-of-life vehicles that have been crushed, in which case any free-flowing liquids –including gasoline, anti-freeze, lubricants and other flammable liquids – should have been removed. Shredder feed might also contain scrap from household appliances.
About 30 hours after departing Newark, following an uneventful passage in relatively clement weather, the watchman on the tug noticed smoke and a glow in the scrap cargo
in the barge, which was being towed around 600 feet (183 m) behind the tug. Flames followed very quickly and a general alarm was sounded. The captain noticed that the fire on the barge was getting larger “very, very fast”. Half an hour later, a US Coast Guard (USCG) boat and two local fire boats arrived on scene, at which point the fire on the barge was described by the mate as an “inferno”. Another four fire boats arrived soon after.
The next day, after the fire had been extinguished, the barge was towed to EMR’s facility in Camden where the cargo was offloaded. Surveyors found considerable damage to the barge. Personnel from NTSB, USCG and EMR examined the cargo for the source of the fire. It was noted that much of the material that had been on the barge showed fire damage, with much of the metal having liquefied in the extreme heat and hardened into large pieces. Several flammable non-metallic materials, including plastics, rubber tyres and electrical components, were found in the cargo. NTSB and USCG investigators could not find conclusive evidence as to where the source of the fire might have been.
The shredder feed scrap loaded onto the barge had been received by EMR from a
number of suppliers, each of which had agreed that the material was free of ‘prohibited materials’, which include free-flowing liquids, non-metallic materials, explosives, corrosive materials, pressurised containers and flammable materials. EMR’s own Inbound Scrap Quality Control Program includes a visual inspection of incoming scrap that should be able to identify if prohibited materials are present, though this is clearly not foolproof.
After loading onto the barge, EMR required that a third-party surveyor calculate the total weight of the material loaded, though would not conduct a detailed inspection. Industry guidelines published by the Institute of Scrap Recycling Industries (ISRI) define the grade of material and the cleanliness of the scrap, though there is an allowance for “negligible amounts” of foreign material.
Applicable US regulations, which are found in Title 40 of the Code of Federal Regulations, Part 261, do not consider scrap metal being transported for recycling to be a “solid waste” and therefore the hazardous waste regulations are not applicable. CMT’s general manager, indeed, suggested that there is no difference between hauling scrap metal and other bulk cargoes such as sand or gravel.
The International Maritime Solid Bulk Cargoes (IMSBC) Code lists scrap metal as a Group C
cargo, meaning that it is unlikely to liquefy, does not possess chemical hazards, is non-combustible, and has a low fire risk.
The maritime insurance industry is less sanguine, NTSB reports. It quotes one firm as saying: “hazardous materials can be present in the cargo, which can ignite or explode”. Insurance companies generally recommend checking the temperature of the cargo regularly, ensuring the load does not include self-heating materials, and appointing a qualified cargo surveying company to assist the master before and during loading.
NTSB has found it difficult to determine the exact cause of the fire aboard the deck barge; having enumerated the possibilities, all it can say is that the probable cause was “the ignition of a combustible material by an undetermined sources, such as sparking from shifting metallic cargo, self-heating of metallic or non-metallic cargo, improperly prepared vehicles and appliances, or damaged lithium-ion batteries”.
The Board does, though, summarise the lessons learned. Its report concludes:
Although scrap metal cargo is typically non-hazardous and poses a low fire risk, there have been recent vessel fires involving such cargo. Even with supplier acceptance agreements and quality assurance personnel visually inspecting scrap metal, metallic and non-metallic hazardous materials often are present within shoreside scrap metal piles and could be loaded onto vessels. These oftenflammable materials elevate the fire risk and can lead to intense fires. Qualified cargosurveying personnel can assist the vessel’s captain before and during loading operations to limit the presence of hazardous, combustible material in scrap metal. Thermal imagery is an effective tool that could be used to identify hot spots in scrap metal cargo at shoreside facilities. Once scrap metal is loaded onto a barge, it is difficult for a towing vessel crew to visually inspect the cargo while underway.
The full report of NTSB’s investigation of the fire aboard the scrap metal barge can be downloaded at https://www.ntsb.gov/ investigations/AccidentReports/Reports/ MIR2307.pdf.
MULTIMODAL • THE JOINT MEETING OF RID/ADR/ADN EXPERTS
DISCUSSED A WIDE RANGE OF PROBLEMS AND PROPOSALS AT ITS SPRING MEETING, WHICH AWAIT MODAL CONFIRMATION
THE JOINT MEETING of the RID Committee of Experts and the Working Party on the Transport of Dangerous Goods (WP15) of the UN Economic Commission for Europe (ECE) was held in Bern this past 20 to 24 March, with Claude Pfauvadel (France) as chair and Silvia Garcia Wolfrum (Spain) as vice-chair. The session was attended by representatives of 23 countries as full members, the European Commission, the EU Agency for Railways (ERA), the Organisation for Cooperation between Railways (OSJD) and 14 nongovernmental organisations.
The main purpose of the Joint Meeting is to discuss matters of multimodal applicability, specifically to road, rail and inland waterways, and not least those emanating from the changes made by the UN Sub-committee of Experts on the Transport of Dangerous Goods (TDG) that are included in the UN Model
Regulations. The spring session of the Joint Meeting was its first opportunity to take a close look at the final decisions taken by the UN Sub-committee at its December 2022 meeting and to start taking steps to transpose those amendments into the modal regulations for rail (RID), road (ADR) and inland waterways (ADN) due to enter into force in 2025.
The first part of this two-part report on the spring Joint Meeting session covered the Working Groups on Tanks and Standards, queries on implementation, and some proposals for amendment. This second and final part covers the rest of the discussions.
There were a number of proposals and observations that the Joint Meeting found it easy to resolve. Firstly, Germany noted that, when the entry for UN 3550 Cobalt dihydroxide
powder had been added to Table A of Chapter 3.2 in RID/ADR in the 2023 edition, no mixed packing code was included in column (9b).
Germany proposed that, as other entries of Class 6.1, classification code T5, packing group I are assigned mixed packing code MP18, the same should be done for UN 3550. The Joint Meeting concurred.
The Intergovernmental Organisation for International Carriage by Rail (OTIF) and the Central Commission for Navigation on the Rhine (CCNR) followed up on discussions at the previous session in response to a Swiss proposal to use the general term ‘container for carriage in bulk’ in 5.3.2.1.5 rather than ‘bulk container’ which has a specific meaning that is restricted to those bulk containers that meet the provisions of Chapter 6.11. At the same time it was decided to change the wording in several places in the French version of RID, ADR and ADN, and it was noted that there might be a need to amend the German version. The ADN Safety Committee had declined to adopt an amendment to 1.4.2.1.1(e) because this would result in the German text deviating from the authentic French version.
Following discussion between CCNR and OTIF, it was proposed that the various different language versions of 1.4.2.1.1(e) should be amended as follows:
(a) In the French version of RID, ADR and ADN, ‘conteneurs pour vrac vides’ be replaced by ‘conteneurs pour le transport en vrac vides’
(b) In the English version of ADR and ADN, ‘bulk containers’ be replaced by ‘containers for carriage in bulk’
(c) In the German version of ADN, ‘Container für Güter in loser Schüttung‘ be replaced by ‘Container für die Beförderung in loser Schüttung‘.
This too found the approval of the Joint Meeting.
Spain arrived with a somewhat more complex problem. It noted that there are a number of entries that have ‘-‘ in column (15) of Table A of Chapter 3.2, and two that have nothing at all. Column (15) shows the transport category relevant to the exemption in 1.1.3.6, and a ‘0’ in that column means that no exemption is possible. The use of ‘-‘ means that no transport category is assigned but it is
not clear what ‘ ‘ is supposed to mean. Furthermore, two of those UN entries given ‘-‘ in column (15), UN 2071 and 3363, are exempted from the provisions of RID and ADR by special provisions and, as a result, do not have entries in all columns; it would seem more consistent to leave column (15) blank also.
Most delegation who spoke felt that the proposed amendments would limit the flexibility of the provisions in 1.1.3.6.3 on a case-by-case basis and preferred to keep the text as it stands, though this does not seem to answer Spain’s questions. Some delegations agreed that perhaps some clarification of the use of the hyphen was warranted and Spain offered to prepare a revised document for the next session.
The UK sought an amendment to add a new special provision in RID/ADR that would permit the carriage of high concentrations of ammonia solution (UN 2672) in intermediate bulk containers (IBCs). Higher concentrations can exert a vapour pressure that exceeds the upper limit of 110 kPa given for IBCs carrying liquids; however, there was an established tradition of safely using composite IBCs (steel frame, plastics inner bottle) with such substances, which was recognised in a special
packing provision (B11) in the UN Model Regulations. As this has not been transposed into RID/ADR, a multilateral agreement, M310, was instigated for RID/ADR.
Noting that this multilateral agreement was about to expire, the UK busied itself in drawing up a new version but, on investigation, found what it saw were weaknesses in the text of B11 in the UN Model Regulations; it proposed an amendment to the UN Sub-committee of Experts on the Transport of Dangerous Goods, which was adopted, but there is still a need for a new multilateral agreement in RID/ADR to allow the continued use of existing IBCs and to extend the list of permitted IBCs to any that are listed in packing instruction IBC03.
The UK initiated its revised multilateral agreement, M345, at the start of 2022 but, in light of the extensive use of IBCs to carry ammonia solutions over many years, felt it would be better to amend RID/ADR to reflect the changes, which would remove the need for ongoing multilateral agreements.
There were some delegates who could not support the proposal on the basis of safety concerns and the proposal was withdrawn; those ADR contracting parties wishing to take advantage of M345 are still able to counter-
sign the agreement. If enough were to do so, it may give more weight to the UK’s argument for amendment.
The European Industrial Gases Association (EIGA) noted that special provision SP 653 is assigned to UN 1006 Argon, UN 1013 Carbon dioxide, UN 1046 Helium, compressed and UN 1066 Nitrogen, compressed; those gases are also shipped in gas cartridges, which are assigned to UN 2037, but SP 653 does not cover UN 2037. This seems odd, since gas cartridges have a much smaller volume than gas cylinders, being limited to no more than 120 ml, and the maximum test pressure is much lower than gas cartridges.
EIGA proposed simply that ‘653’ be added to column (6) of Table A of Chapter 3.2 against UN 2037 and to amend that special provision to reference gas cartridges alongside cylinders. However, the Joint Meeting noted that the UN Sub-committee adopted a new special provision 406 at its meeting in November/December 2022, which deals with similar issues and which could replace the current SP 653 in RID/ADR/ADN. It was recommended that the Joint Meeting wait for the outcome of the April session of the Ad hoc Working Group on the Harmonisation of RID/ ADR/ADN with the UN Model Regulations; EIGA was invited to consider preparing an updated proposal for the autumn 2023 session of the Joint Meeting.
The Netherlands asked for an extension of the exemption provided in 1.1.3.1 to explicitly cover the collection and removal of drug paraphernalia and waste by the police as part of their duties. Its paper offered some solutions, inviting comments and opinions from other delegations. In the event, the general opinion of the Joint Meeting was that such activities are already covered in 1.1.3.1(d) and (e) and that, in fact, no further action was needed.
France noted that there had been some changes to the requirements in the various columns in Table A of Chapter 3.2 against UN 1779 Formic acid, including the addition of a subsidiary Class 3 hazard. Since those changes, France said, the classification code (C3) is no longer correct and should be replaced by ‘CF1’ in column (3b). The Joint
Meeting agreed and adopted the change in the table in 4.1.1.21.6.
France also felt that there should be some clarification on the placarding of removable skips containing dangerous goods carried in bulk. There was some support in principle for the idea but more work was clearly needed. France will provide an updated document with detailed justification for consideration at the autumn session of the Joint Meeting.
Spain queried the duties of the consignor in relation to pressure receptacles, as laid down in 4.1.3.6.7 and 4.1.6.5, noting that there are some obligations on the consignor that can only be carried out if the consignor is actually present during or after the filling process. In principle, this may or may not be the case and it seems unreasonable to make the consignor verify that closures and equipment are not leaking – this is the loader’s responsibility (albeit the consignor may be the loader). The Joint Meeting welcomed the proposed amendment and, after some comments, Spain offered to prepare an official document for the autumn session.
Germany took up a topic that it had already brought to the attention of the UN Subcommittee of Experts, on the activation conditions of pressure relief devices. The issue is that, apart from closed cryogenic receptacles, there are no requirements regarding the conditions under which pressure-activated pressure-relief devices of non-UN pressure receptacles designed, constructed and tested in accordance with the standards referenced in 6.2.4.1 must or must not yet be activated. The Sub-committee had agreed to continue to work on the topic but noted that there are existing national and regional provisions that should be taken into account and Germany has, since then, held further discussions with a range of experts and significant differences have emerged. In particular, while the priority in Europe is to prevent activation under normal conditions of carriage (i.e. below the test pressure), in the US the focus is on protection against burning in the event of a fire, thus prohibiting activation above the test pressure. “This significant different prevents worldwide
harmonisation,” Germany’s paper said. It offered amendments to P200(2) and consequential additions as a means of clarifying the situation, including a reference to a Compressed Gas Association (CGA) publication.
Some delegates, failing to see any safety concerns, were against amending the current provisions. Others did see some value but wanted a reference to an international standard rather than a CGA (i.e. US-based) publication. Germany and EIGA were invited to organise an informal meeting to further develop the proposal so that it could be considered again at the next session.
The Joint Meeting was, though, happy to accept another, more focused proposal from Germany to amend packing instruction P200 in relation to the prohibition of pressure relief devices for non-UN acetylene cylinders. This followed on from the agreement at the spring 2021 session of the Joint Meeting of a proposal from Germany to clarify that neither fusible plugs nor pressure relief devices should be used in such cases. Although this clarification in 6.2.3.1.5 of RID and ADR made it into the 2023 text, a consequential
Who
amendment to special packing provision ‘p’ in P200 had been overlooked. It was agreed that the words “fitted with pressure relief devices or” in the second paragraph of that special
should the final paragraph, which refers only
The UK brought to the attention of the Joint Meeting a decision taken by the International Maritime Organisation (IMO) to revise the description of ‘battery vehicle’ to ‘road gas elements vehicle’; while the terms ‘battery vehicle’ and ‘battery wagon’ have been in use for decades in RID, ADR and ADN and are regularly involved with those rulebooks, those who are less familiar with their use could powered by batteries. Should RID/ADR/ADN
EIGA felt there was no reason to assume that confusion would be so great in terms of ADR and RID, though if the Joint Meeting felt action was needed, a compromise might be found in a term such as ‘multiple-element gas consistency with other definitions. Care would
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have to be taken, though, and ‘battery vehicle’ is used elsewhere, including in the EN 13807 standard.
There was a difference of opinion, with some delegates seeing no need for the change and others supporting EIGA’s compromise solutions. The UK document was withdrawn but a follow-up document may appear at the next session.
France drew attention to an issue that had emerged during discussions on the implementation of electronic freight transport information (eFTI), which currently refers to Chapter 5.4 of RID/ADR but cannot list all those special provisions that include an obligation to make a statement in the transport document. Furthermore, these obligations are not mentioned in Chapter 5.4 and, France said, users who are not expert in the regulations may not be aware of them.
France proposed the addition of a new sub-paragraph 5.4.1.1.1(l) to require a declaration on the transport document whenever a special provision is applicable.
The Joint Meeting, after a thorough discussion and some amendments being tabled, did agree to made some changes.
Paragraph 5.4.1.1.21 is amended to read: Information required in specific cases defined in other parts of RID/ADR/ADN
Where in accordance with provisions in chapters 3.3, [3.5,] 4.1, 4.2, 4.3 and 5.5 information is necessary, this information shall be included in the transport information.
A new second sentence is added to 5.4.0.1 but remains in square brackets pending final adoption:
[The information prescribed in this Chapter related to the dangerous goods carried shall be available during carriage in such a way that the goods per wagon/vehicle/vessel and the wagon/ vehicle/vessel which is carrying them can be identified in the documentation.]
Ireland arrived with some observations of the practical implementation of the new 5.4.1.1.3.2, introduced in the 2023 text of ADR to allow the quantity of waste being transported to be estimated. It has emerged that there are practices that are not permitted by the provisions as they stand, including the carriage of clinical and medical waste of UN 3291, already packaged in accordance with packing instruction P621, within a container in the form of a cage, which is in this instance acting as an overpack. In such a scenario, healthcare staff collect waste into UNapproved packagings and place them into a container that is collected by a waste carrier; if the carrier’s drivers are required to count each individual packaging, these would all
have to be removed from the cage and each individual type and quantity would have to be noted on the ADR transport document. With many collections during the course of a day, this requirement substantially affects efficiency and also increases the drivers’ exposure to any hazards involved. Ireland felt the situation could be improved if specific reference to the use of overpacks could be made, and if UN 3291 could also be specifically referenced.
There was no great support for Ireland’s proposal, though it was thought that the issue of clinical waste may bear further investigation. Ireland offered to review its proposal and present a new document at the next session.
Germany reported back on the work of an informal working group it chaired after discussions during the spring 2021 session of the Joint Meeting where, following an incident involving the carriage of molten aluminium, it was decided that there needed to be some uniform minimum requirements of carriage if such transport is to be authorised by the competent authority of the country of origin. A first proposal had been presented at the autumn 2022 session, which generated some discussion and feedback; a subsequent session of the working group was held this past December, where its final proposals were ironed out.
The informal working group proposed to add a new alphanumeric code, AP11, to clarify the requirements of special provision VC 3, which is assigned to UN 3257 Elevated temperature liquid, nos under ADR. The Joint Meeting agreed to the proposal, with some minor editorial revisions, but kept the text in square brackets pending confirmation by the next session of WP15.
AP11 will introduce requirements for the vats used to carry molten aluminium in bulk, including their construction, inspection, operation and marking; and requirements for driver training and the design and use of carrying vehicles. There will be a new transitional measure in 1.6.1 and a definition of ‘vat’ in 1.2.1. HCB will report on the details
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The European Federation of Waste Management and Environmental Services (FEAD) reported on discussions by the informal working group on the transport of waste concerning the chemical compatibility of plastics packaging containing liquid waste. At present, chemical compatibility may be verified by assimilation to standard liquids (4.1.1.21) or, if this is not possible, by design type testing or laboratory tests (6.1.5). When applied to wastes, this creates problems, since the composition of waste is often not exactly defined and can vary from day to day, which strictly speaking means that further testing is required – this involves the storage of the dangerous goods in question at room temperature for six months, which is clearly not practicable. FEAD proposed that the material of the packaging should be tested with all six standard liquids for the verification of the chemical compatibility of plastics packagings and that the packaging itself
Most delegates supported the proposal in principle but there were questions on the availability (or lack of) of such packagings. Others preferred to clarify the text with respect to the packing group performance level and the compatibility testing. FEAD presented an informal document taking account of the comments received and offering two options for amending 4.1.1.21.7; this will be discussed further by the informal
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discussions by the informal working group on the transport of hazardous waste regarding the use of combination packaging. While original products can be packed in a combination packaging specifically tested for that purpose, in waste streams it is often only the inner packaging that remains available; this must be sorted according to its hazardous properties and packed in accordance with the
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requirements of RID/ADR. These are, though, too strict to cope with the variations of inner packagings experienced by waste management operators. Some countries have developed national derogations but the informal working group felt that there is a need for harmonised rules to allow for international carriage.
FEAD offered a new 4.1.1.5.3 to establish common rules and the provisions that should be applied. There was general support from the Joint Meeting but further clarification was requested and some amendments were offered by Ireland. FEAD was invited to organise an intersessional meeting of the informal working group and to finalise the proposal as an official document for the autumn 2023 session of the Joint Meeting.
The informal working group had also been looking at provisions for the transport of waste by private individuals, which is not currently covered explicitly in 1.1.3.1(a) and FEAD arrived with a proposal to provide such provisions. The Joint Meeting accepted the proposal, which involves renumbering 1.1.3.1(a) and 1.1.3.1(a)(i) and the addition of a new 1.1.3.1(a)(ii):
The carriage of dangerous goods by private individuals in the limits defined in paragraph (a)
(i) intended initially for their personal or domestic use or for their leisure or sporting activities and which are carried as waste, including the cases when these dangerous goods are no longer packaged in the original package for retail sale, provided that measures have been taken to prevent any leakage under normal carriage conditions;
France presented an informal document with details of the discussions by the informal working group on the transport of waste concerning the carriage in bulk of specific categories of wastes containing asbestos of UN 2590 and 2212. It included a proposal based on an exemption that France has introduced in its national regulations that allows the carriage in bulk of such wastes contained in ‘container-bags’ inside a rigid bulk container. This system has been in use in France since 2019 and has a very good safety record, while also being a practical solution for dealing with such wastes at demolition sites. France suggested incorporating it into RID/ADR in the form of a new special provision for use when SP 168 cannot be applied.
The proposal received support in principle from the Joint Meeting but also some comments; France offered to review the
proposal in light of those comments and prepare and official document for the next session.
The International Road Transport Union (IRU) gave an update on the informal working group on e-learning, which was established last year and held two sessions. A further meeting was due to be held in April or May and delegations were invited to take part.
The Joint Meeting has repeatedly recognised the need to clarify which authorities and bodies are covered by the term ‘competent authority’ in each contracting party/state and Switzerland suggested an informal working group on the subject should be established, going so far as to offer some draft terms of reference. Switzerland also noted that WP15 has already done some work on the use of the term ‘competent authority’ in ADR.
The Joint Meeting agreed to the suggestion, adopting the proposed terms of reference and suggesting WP15’s work might offer a starting point. Switzerland said it would organise a virtual kick-off meeting to get the ball rolling and delegates were invited to participate, with the aim of holding an in-person meeting in conjunction with the autumn session of the Joint Meeting.
At the autumn 2022 session of the Joint Meeting, ERA updated delegates on the ongoing work of the UN ECE/OTIF working group on the improvement of accident reports; a further coordination meeting was held in mid-December to discuss the comments made. ERA now came with an informal document updating the Joint Meeting on those discussions. The main conclusions were that:
(a) There was no need to change the Common Safety Methods on the Assessment of Safety Level and Performance of Railway Operators (CSM ASLP)
(b) Several potential amendments to RID were identified and will need further discussion, particularly regarding the triggering criteria for accident reports in RID and the two-step reporting in RID/ADR/ADN
(c) The use of the future Information Sharing System and national systems can be
interfaced and may be a positive step forward for the reporting of dangerous goods transport occurrences in countries that have no reporting system
(d) The UN ECE/OTIF working group should carry on and complete its work, and
(e) A further coordination meeting should be organised to update the Joint Meeting of any follow-up decisions and further developments. The Joint Meeting noted the information provided and agreed on the need to continue the work.
An informal document from France expressed gratitude for ERA’s activities in coordinating the work and noted that, while the process relates primarily to rail transport, other modes could also benefit from its conclusions. Indeed, France reminded the Joint Meeting that it had, in 2018, approved the terms of reference for an informal working
group covering much the same ground and that this followed up on a three-year work programme that had met under the guidance of ERA. This working group’s activities were interrupted by the Covid-19 pandemic and could not continue.
Nonetheless, in the belief that the work done in respect of CSM ASLP includes concepts that are valid for all modes and could easily be transposed, France had proceeded to draw up a set of three modal occurrence reporting forms for discussion. It also recommended that the Joint Meeting’s informal working group be reconstituted.
The Joint Meeting thanked France for its work and welcomed the draft online reporting forms. It agreed that the activities of the working group should continue, taking into account new circumstances and goals such as the protection of data, the possibility
of extension/revision of occurrences, individual or comparison analyses, and the creation of national/regional/global systems. France offered to organise an in-person meeting, tentatively scheduled for October 2023.
Now that the world has found a way to live with Covid, the UN office in Geneva has opted to discontinue the organisation of hybrid sessions. As a consequence, the Ad Hoc Working Group on the Harmonisation of RID/ ADR/ADN with the UN Recommendations on the Transport of Dangerous Goods was to hold its meeting on 26/27 April as an in-person session only. The autumn session of the Joint Meeting, which likewise will be an in-person event, is scheduled to take place from 19 to 29 September.
We well understand the frustration expressed by practitioners of the dark arts of dangerous goods compliance. The regulatory texts are dense and expansive – and change frequently. But pity those who labour under the requirements of REACH and other similar provisions around the world. Not only do they have to know the most precise details of the materials that they are putting onto the market, they also have to know exactly what their customers are going to do with those materials.
Downstream user modelling has its limits, though, even if there are those who seek to push the boundaries of the uses to which substances are expected to be put. Take, for instance, a case that emerged at Domodedovo Airport in Moscow last month, when security officers had to detain a Vietnamese woman who arrived on a flight from Dubai. In the pocket of her coat, she had two packs of playing cards and it was these that set off the Yantar radiation control equipment. Further investigation showed that the two decks of cards exceeded the permissible radiation limit by a factor of 440. They had been deliberately ‘marked’ with a potassium-40 isotope, which is hazardous to human health, for use in an elaborate scam. Apparently card sharps have taken to using decks marked in this way, and hide a radiation dosimeter about their person; when a ‘marked’ card is close by, the dosimeter will give off a signal (presumably by vibrating) and give the fraudster a clue to the cards that his or her opponent has in their hand.
There is something of a ‘coals to Newcastle’ element to this story, given that the Russian
security apparatus has been strongly suspected of using radioactive material to kill its opponents abroad in recent years. Not only that but, with things as they are these days and the country on high alert after the invasion of Ukraine, one might imagine that the woman in question would have thought twice about trying to smuggle a radioactive material into Russia. There must have been a big game in town that week.
In early May, six students from Caney Creek High School in Texas needed hospital treatment after being exposed to a foul odour. When it first appeared, the school building was evacuated and the local fire department came to check for gas leaks, but found nothing. The stink stayed, though, and classes had to be suspended for much of the week, while responders continued to declare the building free of gas.
It was only at the end of the week that one student confessed. He had brough a can of a highly concentrated prank stink spray, named Hensgaukt Fart Spray, into the school and sprayed it around. His motive is not noted but we can imagine. For those interested in knowing more, the spray in question is available via Amazon for less than 15 bucks, with the manufacturer saying it is “an indispensable entertainment tool for young people’s parties and gatherings in the new era”.
Once again, we have to wonder about young people “in the new era”. Stink bombs were always funny but in our day, if we wanted to make the school smell like farts, there were more natural ways of doing so.
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