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NEWS HAZARDOUS CARGO INDUSTRY

Welcome to the weekly news alert, bringing you the main headline stories and

relevant events from the hazardous cargo industry

November 6, 2008

REGULATIONS Following the entry into force of EC Regulation 689/2008 on the import and export of dangerous chemicals, HM Revenue & Customs has introduced a requirement for UK exporters to include a reference identification number (RIN) in box 44 of the single administrative document (SAD). Code Y915 will be used to show that the necessary permission has been given for the export of chemical substances and preparations in accordance with the regulation. The requirement took effect on November 1. Full details can be found at http://customs.hmrc.gov.uk.
US DOT's Multimodal Hazmat Intelligence Portal (HIP), launched on October 31, aims to bring together more than 25 information sources to help improve and coordinate federal and state inspection and enforcement activities. Data has been drawn from PHMSA, USCG, FAA, FMCSA and FRA to support decision makers throughout the US that have a responsibility over hazmat enforcement. The limited-access data warehouse, which will be extended over time, also provides useful 'dashboards' giving safety performance indicators for many of the estimated 500,000 hazmat shippers, carriers and manufacturers that operate in the US.
The reformatted ICAO packing instructions, which will come into effect on January 1, 2011, have now been published in French, German and Spanish, following the English version that appeared on ICAO's website two weeks ago. The four sets of instructions are available in separate pdf files and there is also an Excel spreadsheet showing the corresponding old and new packing instruction numbers for each entry in Table 4.2; all can be accessed at www.iata.org.
TRAINING UK DfT has decided not to make major changes to the national ADR driver training requirements. It will, however, introduce a 'basic' course as an alternative to existing training, bringing the UK more closely into line with other countries. Other changes are planned that will tidy up the structure of driver training in the UK. All these will take effect from July 2009. The extensive consultation exercise undertaken by DfT and SQA also identified possible improvements to ADR that would strengthen the regulatory framework and these will be promoted through the relevant agencies.

TANKER SHIPPING Japanese shipowner MOL is to integrate its tanker division with that of Tokyo Marine to take advantage of new business opportunities it sees in the tanker market. New organisations in both companies will team up to address the latest trends in the sector, such as transport of ethanol, while proactively exploring new businesses. In the future, the organisations will cooperate to formulate fleet plans, respond to customers and manage vessel operations. MOL says this allows it to reinforce its overall structure and provides more flexibility to meet diversifying customer needs.
Overseas Shipholding Group has reported EBITDA for the third quarter increased 175% to $255.5m from $92.8m in the comparable period of 2007. Net income for the period increased to $197.8m from $26.6m. For the quarter ended September 30, 2008, timecharter equivalent revenues were $434.7m, a $180.7m, or 71% increase from $254m for the same period of 2007.
Gulf Navigation Holding's third quarter income has more than doubled to $12m, compared to $5.6m for the same period last year, according to a Gulf News report. Gulf Navigation owns 14 operating vessels and has five new tankers on order. The company received chemical carriers Gulf Fanatir and Gulf Huwaylat this summer, chartering them to Sabic for 15 years. It will deliver two more tankers to Sabic by the end of 2009.
Aker Yards is changing its name to STX Europe. The name change reflects the entry of the South Korean-based STX Business Group as principal shareholder in the company during summer 2008. Effective from November 3, the international shipbuilding group Aker Yards, with its head office in Oslo, Norway, and all its subsidiaries, will share the common brand STX Europe. STX Europe specialises in designing and building purpose-built vessels for offshore oil and gas operations, and other specialised ships. In 2008, STX Europe will deliver 28 offshore vessels and two chemical tankers.
Odfjell has sold Bow Sky (40,005 dwt, built 2005) for $32m to a subsidiary of nabCapital, the institutional banking and capital markets division of National Australia Bank with an eleven year charter back. The ship will be delivered to its new owner in November; it will continue in the Odfjell Tankers Pool and be managed by Odfjell. The sale of the ship is to strengthen the equity following the Norwegian retroactive tax imposed last year, says Terje Storeng, president of Odfjell.
In a very quiet market, brokers have reported three sales involving older chemical tankers. The Chilean-registered IMO III chemical/oil tanker Abtao (9,145 dwt, built 1981) is said to have been sold for $2.2m to unidentified buyers. The 1983-built, IMO II/III Sky Crystal (9,000 dwt) was sold by Cosmos Shipping to Greek buyers and has been renamed Action; no price was indicated. And the 1988-built IMO II Annuity (3,300 dwt) was sold by UK-based James Fisher to Argentine group Inmarsa.

LNG Exmar, Excelerate Energy and Black & Veatch have formalised an agreement to develop an LNG floating liquefaction, storage and offloading (FLSO) concept. The unit will combine liquefaction facilities, storage tanks, loading systems and other infrastructure on a single floating vessel. "By developing both regasification vessels and complementary terminals to service them, Excelerate Energy is in a unique position to succeed in combining floating liquefaction with its existing global downstream network, providing a broad-based solution for developing gas markets," says Rob Bryngelson, president of Excelerate.
The UK's largest single LNG import cargo is due to arrive within days to commission the newly expanded Isle of Grain terminal, operator Centrica announced this week. The Q-Flex tanker Al Khuwair, with a capacity of 217,000 m�, is carrying a cargo from RasGas in Qatar and passed Gibraltar yesterday.
The Chinese city of Qingdao, in the Shandong Province, has plans to operate an LNG project to satisfy the LNG demand of the Shandong Peninsula. The first and second phase of the Qingdao LNG project will receive and transport 3m and 5m t of LNG per year. Its annual transportation capacity will be enlarged to 10m t of LNG, namely 12 bn m� of natural gas, in accordance with the increasing market demand.
The start-up of a gas export facility in Qatar, Qatargas III, will be delayed to 2010 from 2009, Reuters reports. A second facility, Qatargas IV, would also be delayed, although would still start up in the planned year of completion, 2010, because of a shortage of materials and labour.

TANK EQUIPMENT OPW Engineered Systems has released its new 1004D3 API Bottom-Loading Coupler, which the company is hailing as "the industry's most user-friendly bottom-loading coupler currently available today." OPW explains: "The advanced features of the D3 Coupler include a five-cam design that ensures easy alignment, tight adaptor connections and resistance to side forces while loading; dual interlocks that ensure that the D3 can't be opened unless it is properly connected to an API adaptor; and a shaft design that relies on dual high-performance O-rings."
Gauging specialist Rosemount Tank Gauging has received an order to provide products for the Pluto LNG project, an Australia joint-venture between Woodside, which is also the operator, Tokyo Gas, and Kansai Electric. Equipment to be provided by Rosemount includes one Rosemount RTG 3960 radar gauge per tank for Hi-Hi level alarm, and one FCU 2160. Construction of the project's storage tanks and fabrication of the offshore and onshore infrastructure is underway, reports Rosemount.
Instrumentation provider Endress+Hauser (E+H) has opened its new Calibration and Service Centre in LaPorte, Texas. The company says the new centre will provide its customers in the area with access to services including calibration for flow, temperature and pressure, flow instruments, and instrumentation maintenance training. "The new Golf Coast centre adds to our various calibration facilities around the world," says E+H. "We offer calibration for after-sales testing to ensure that instrumentation is within specification."
BULK STORAGE The directors of independent gas storage company Portland Gas have decided to suspend the current joint venture funding process for the planned gas storage terminal in Dorset, UK, as they believe it would not result in acceptable terms being reached for the company. Because of the suspension the new target date for first gas has been revised to end in the first quarter 2012 from the fourth quarter 2011. Achievement of full capacity is still expected for the winter of 2015. In order to achieve these target dates the project will require approximately �12m of further funding in the first quarter 2009 followed by a significant further project funding by the end of 2009.

DANGEROUS GOODS BY RAIL US Development Group (USDG) has begun to receive and offload ethanol railcar unit trains at its Baltimore Transload Terminal, a multi-modal ethanol distribution hub serving the mid-Atlantic region. The Baltimore terminal receives inbound rail and ship/barge shipments and has outbound truck and pipeline capabilities. Rail service is provided by CSX Transportation and the terminal features a 100 railcar unit train capability, a 150-railcar capacity yard and a fully automated 20-spot railcar offloading facility. The terminal also has onsite locomotives and switching for ethanol unit train service with rapid turnaround times of less than 24 hours.
North American railroad Canadian National (CN) has acquired the three principal railway subsidiaries of the Quebec Railway Corporation (QRC), and a QRC rail-freight ferry operation, for C$49.8m. Under the transaction, CN is purchasing 540 track miles of rail line it formerly owned in the Canada regions of eastern Ontario, eastern Quebec and northern New Brunswick, as well as a ferry service on the St Lawrence River in eastern Quebec. CN sold the rail lines to QRC in the late 1990s and has held a minority equity interest in the ferry operation since its start-up in 1975.
CHEMICAL DISTRIBUTION Elementis has extended its partnership with Belgium-headquartered logistics specialist Ahlers to include the distribution of its packed chemicals in China and Asia. Under the arrangement, which involves forwarding and contract logistic activities, Ahlers China will now handle Elementis's shipments from Shanghai to Antwerp and Novorossiysk in Russia. At the same time, Ahlers China will also be responsible for storing Korean-produced chemicals in a bonded dangerous goods warehouse in Shanghai for subsequent distribution across the mainland.
Airgas, the largest US distributor of packed and bulk industrial, medical and speciality gases, has announced second quarter net earnings of $72.8m, up 44% on the $50.6m achieved 12 months ago, from sales worth $1.2bn, themselves up 15% year-on-year. "We are performing very well in a moderating economic environment," says Airgas chairman Peter McCausland. "Acquisition activity has been strong in the first half of our fiscal year, with a total of six acquisitions and $142m of acquired annual revenue to date. We are expanding returns by effectively integrating acquisitions and leveraging our distribution infrastructure."
Tomskneftechim, part of Sibur Holdings, has said it is to bring its logistics operations in-house and increase its use of multimodal operations. As a result, the company, one of Russia's largest polyolefin and polymer producers, will put a lot more downstream product onto the roads, local press reports suggest.

INDUSTRIAL PACKAGING Greif has sold the assets of its steel pail business in Greenville, Ohio to Cleveland Steel Container Corporation and will cease production at the plant, which employs a total staff of 54, on December 19. "We are exiting the steel pail business in North America because it doesn't fit with our core business here. Our pail customers can be better served by a larger supplier to the market," says Mike Patton, president of Greif Packaging. At the same time, the company is also exiting three of its North American box plants in Toledo, Ohio, Roseville, Michigan and Louisville, Kentucky.
US-based Plastican has complemented its range of plastic pails with the launch of new Twist-and-Lock Lids. Designed specifically for pool and spa chemicals, the new patented closure system delivers what the company describes as "superior end-user convenience, safety and reliability". Fully recyclable, Twist-and-Lock Containers are strong enough to allow stacking and meet all relevant UN performance requirements while also passing child-resistance and senior-friendly protocols.
US-based Liftomatic has expanded its range of innovative drum handling equipment with the launch of the L4F-QC drum-lifting forklift attachment. The new system features an automatic cam device that locks the attachment to the forklift thus sidestepping the need for safety chains or for the driver to dismount the truck to secure it in place. Fully mechanical, the L4F-QC requires no electric or hydraulic connections and in one sitting can handle up to four steel, fibre or plastics rimmed drums weighing up to 2,000 lb (900 kg) apiece or 8,000 lb (3,600 kg) in total.

PEOPLE Katrine Trovik has resigned from her position as director of the Board in Odfjell due to her new position as senior vice-president in DnB NOR ASA for corporate customers in Bergen and Hordaland. As already announced, the Board will call for an Extraordinary General Meeting to be held on December 2 to propose replacements for Trovik and Peter Livanos.
The Hellespont Group has appointed Christian Ramm as joint managing director of Hellespont Hammonia, Hellespont's Hamburg-based fleet management and safety company. Ramm was previously managing director of Bernhard Schulte Shipmanagement. He takes over his new role from Georg von Oldershausen and is responsible for commercial and financial matters, working alongside Capt. Matthias Imrecke, who remains responsible for ship management. Von Oldershausen will now be director of administration at Hellespont.
JP "Hanco" van den Akker has been named managing director of Azelis Benelux. A 41-year old Dutch national, van den Akker joins the company from Honeywell, where he was responsible for speciality chemicals sales and distribution across Europe, Africa, the Middle East and India. With business growth in the Benelux region a key strategic goal for Azelis, his initial focus "will be to mobilise all potential synergies in Belgium in order to maximise sales".

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