Quarterly March 2012 - Odfjell

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10 HigHLigHTS odfjell quarterly magazine OTR improves environmental and safety performance to get back on track By Theo Kruithof Since the summer of 2011, Odfjell Terminals (Rotterdam) BV (OTR) has been the scene of a number of incidents. immediately after the incidents, OTR started work to improve its environmental and safety performance in close consultation with the authorities DCMR (the regional environmental authority) and the Labour inspectorate. Here is a brief review and an outline of the current state of affairs at OTR. incidents August 2011 saw the uncontrolled release of 200 tons of butane gas. Due to a gap in our procedure, OTR failed to report this incident to the DCMR. OTR has meanwhile implemented strict procedural measures to prevent a repeat of such an incident. The Public Prosecution Service is currently investigating the events. Benzene In August 2011, the preliminary results of a survey into benzene concentrations carried out by DCMR in June 2011 were announced. OTR cooperated in this survey on a voluntary basis, since it fully endorses the authorities’ objective to minmize emissions. At that time, increased benzene values were found in certain places on tank roofs. The Labour Inspectorate decided to temporarily shut down operations. Subsequently, OTR checked each individual tank and those that were safe were released again. Where applicable, OTR preventively replaced the tank gaskets to prevent further emissions from the tanks. Vapour treatment systems During an inspection under the Major Accidents (Risks) Decree (‘BRZO’), the Labour www.odfjell.com The new jetty H (front) and jetty G and the pipeline corridor Inspectorate ruled that OTR failed to satisfy the authorities in fully demonstrating the safe functioning of vapour treatment system DVS-1. DVS-1 was already earmarked for decommissioning in 2012 as it was outdated. Spurred by the comments of the Labour Inspectorate, OTR decommissioned DVS-1 sooner than planned. All products handled by OTR via DVS-1 are now processed via OTR’s main vapour treatment system DVS-4. Release of gasoline In January 2012, there was a gasoline spill at OTR. The incident was immediately under control. The safety system worked well, as a result of which the amount of gasoline released remained limited. At own initiative, OTR decided to immediately shut down part of the operations aimed at the winterization
Tank 930, one of the domed floating roof tanks Tank 576, the recently renovated Fuel Oil storage tank. 6,660 cbm gross capacity, heated and insulated of gasoline, in order to guarantee safety. OTR subsequently started an investigation into the cause of the incident, as part of which a thorough analysis is being carried out into the safety of this process. OTR will not resume these operations until the safety studies (HAZOP) have been reassessed and there is absolute certainty about the safety of the process. Visible improvement OTR, in consultations with the authorities, has implemented improvement measures. In response to the incidents, the following measures have been taken with immediate effect: • Emissions from benzene have been reduced to a minimum • Special measuring equipment has been acquired to detect and resolve any (residual) emissions as soon as possible • Procedures and inspections have been tightened to prevent future emissions • Additional safety experts have been appointed to ensure compliance with procedures • All critical business processes are subject to a risk analysis (HAZOP), including the butanization (winterization) of gasoline Action plan and investments OTR has also drawn up an action plan aimed at implementing major improvements in the next six months. The action plan forms part of an extensive improvement programme. The improvement programme aims to improve the safety culture, the primary process, and the safety management system. In order to improve the primary process and the safety culture OTR has hired renowned consultancy agencies, like TNO and The Brown Paper Company. They both have a lot of experience with these kind of trajectories. The Brown Paper Company for example have also worked for Rio Tinto, the neighbours of OTR. This is in addition to investments of new constructions and replacements. Support for OTR Customers are kept continuously informed of the situation and the developments. Telephone contact is maintained multiple times a week. Customers understand the situation and can see that OTR is making improvements. Moreover, some of the customers actively support OTR in the improvement of environmental and safety performances. Media and stakeholders Following the incidents, OTR has received a odfjell quarterly magazine lot of media attention. This affects everyone involved. Hence OTR has intensified its communication efforts with the media, politicians, interest groups, and other stakeholders. The aim is to be transparent about the situation and developments. Within this framework, stakeholders are invited to visit the terminal in order to obtain a real picture of OTR and its methods of operation. A team of communication specialists has been appointed and charged with the active management of the communication with clients, stakeholders, politicians, the press, etc. This is starting to prove valuable as we have been able to reduce speculation by presenting facts. What is the current status? On Wednesday 1 February 2012, as part of an unannounced visit, the SZW Inspectorate (as the Labour Inspectorate is called now) carried out an inspection at OTR. This inspection confirmed that the problems at OTR have largely been resolved, though there are still many things that need thorough attention. During the same inspection, DCMR checked five tanks for emissions, using infrared cameras. On that occasion, everything appeared to be in order; no leaks were detected. Thus we are on the right track. NR.04/ 11 11
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