Bulk Cargoes TerminalBulk Cargoes Terminal

Types of bulk cargoes terminalsTypes of bulk cargoes terminals Types of cargoes handled at such facilitiesTypes of cargoes handled at such facilities Risks associated with such facilitiesRisks associated with such facilities Insurance coverage Insurance coverage Preventive measures to mitigate such Preventive measures to mitigate such

RisksRisks Efficient port operationsEfficient port operations Simulation studiesSimulation studies Tour of Jurong PortTour of Jurong Port

Types of Bulk Cargoes TerminalsTypes of Bulk Cargoes Terminals

Multi-purpose TerminalsMulti-purpose Terminals Dedicated Bulk Cargoes Terminals.Dedicated Bulk Cargoes Terminals.

Multi-Purpose TerminalsMulti-Purpose Terminals

Jurong Port is a good illustration of a Jurong Port is a good illustration of a multi-purpose terminalmulti-purpose terminal

We handle: We handle:

a) General cargoes;a) General cargoes;

b) Dry bulk cargoes;b) Dry bulk cargoes;

c) Liquid bulk cargoes; andc) Liquid bulk cargoes; and

d) Containersd) Containers

Dedicated Bulk Cargoes TerminalDedicated Bulk Cargoes Terminal

Liquid Bulk Cargoes Facilities:Liquid Bulk Cargoes Facilities:

a) For Petrochemicals;a) For Petrochemicals;

b) For Petroleumb) For Petroleum

Types of Cargoes HandledTypes of Cargoes HandledMulti-Purpose Terminal (Jurong Port)Multi-Purpose Terminal (Jurong Port)a)a) CementCementb)b) Copper SlagCopper Slagc)c) FertilisersFertilisersd)d) SandSande)e) LubricantsLubricantsf)f) Steel products (H beams, re-bars, steel plates)Steel products (H beams, re-bars, steel plates)g)g) Machineries/EquipmentMachineries/Equipmenth)h) Ship spares and ships suppliesShip spares and ships suppliesi)i) Containerised cargoesContainerised cargoes

Types of Cargoes HandledTypes of Cargoes Handled

Dedicated Liquid Bulk Cargoes TerminalDedicated Liquid Bulk Cargoes Terminal

a) Solvents (Xylene, Toulene, a) Solvents (Xylene, Toulene, Methanol)Methanol)

b) Phenolb) Phenol c) TEL c) TEL d) Styrene Monomerd) Styrene Monomer e) Vinyl Chloride Monomere) Vinyl Chloride Monomer f ) Acidsf ) Acids

Risks Associated With CargoesRisks Associated With Cargoes

Health RisksHealth Risks Fire & Reactivity RisksFire & Reactivity Risks Environmental pollution risksEnvironmental pollution risks

Risks Associated with CargoesRisks Associated with Cargoes Product nameProduct name: Xylene - colourless, sweet : Xylene - colourless, sweet

smelling liquid used in printing, rubber and smelling liquid used in printing, rubber and leather industries and as a cleaning agent for leather industries and as a cleaning agent for steel and silicon waferssteel and silicon wafers

HazardsHazards: Highly flammable (above 27 : Highly flammable (above 27 degrees C explosive vapour/air mixtures may degrees C explosive vapour/air mixtures may be formed), may cause headaches, dizziness, be formed), may cause headaches, dizziness, confusion and change in sense of balanceconfusion and change in sense of balance

ToxicityToxicity: Toxic to aquatic animals. High : Toxic to aquatic animals. High concentrations may cause increased concentrations may cause increased numbers of deaths, delayed growth and numbers of deaths, delayed growth and development. Same concentrations may development. Same concentrations may cause damage to motherscause damage to mothers

Risks Associated With CargoesRisks Associated With Cargoes

Product NameProduct Name : Phenol (old name carbolic : Phenol (old name carbolic acid) is a colourless liquid with a sweet acid) is a colourless liquid with a sweet smell. Used as a disinfectant for sterilising smell. Used as a disinfectant for sterilising wounds, surgical dressings and wounds, surgical dressings and instruments , as raw material for medicinal instruments , as raw material for medicinal drug as aspirin , widely used in manufacture drug as aspirin , widely used in manufacture of insecticides, dyes. of insecticides, dyes.

Hazards Hazards : Acute poisoning by ingestion, : Acute poisoning by ingestion, inhalation or skin contact may lead to inhalation or skin contact may lead to death.death.

ToxicityToxicity : Systemic poison and a serious : Systemic poison and a serious health hazard by prolonged exposurehealth hazard by prolonged exposure

Risks Associated with CargoesRisks Associated with Cargoes

Product NameProduct Name: Tetraethyl Lead: Tetraethyl Lead Health hazardHealth hazard: Inhalation can cause : Inhalation can cause

convulsions, dizziness, headache, vomitting, convulsions, dizziness, headache, vomitting, weakness, unconsciousnessweakness, unconsciousness

Effects of repeated exposureEffects of repeated exposure: may cause : may cause toxicity to human reproduction or toxicity to human reproduction or developmentdevelopment

Toxicity Toxicity : Toxic to aquatic organisms and may : Toxic to aquatic organisms and may cause long term effects in aquatic cause long term effects in aquatic environmentenvironment

Chemical dangers: decomposes on heating Chemical dangers: decomposes on heating producing toxic fumesproducing toxic fumes

Risks Associated with CargoesRisks Associated with Cargoes

ProductProduct: Vinyl Chloride, a colourless : Vinyl Chloride, a colourless gas with mild sweet odour; a gas with mild sweet odour; a manufactured product used to make manufactured product used to make pvc (polyvinyl chloride)pvc (polyvinyl chloride)

HazardsHazards : Cause dizziness. : Cause dizziness. Breathing high levels will cause you Breathing high levels will cause you to pass out and extremely high levels to pass out and extremely high levels may cause death.may cause death.

ToxicityToxicity: A known carcinogen: A known carcinogen

Risks Terminal Operator/s Face Risks Terminal Operator/s Face

INFRASTRUCTUREINFRASTRUCTURE : Destruction or : Destruction or DamageDamage

What are these infrastructure ?What are these infrastructure ? BerthsBerths Warehouses or Storage TanksWarehouses or Storage Tanks Drumming facilitiesDrumming facilities Trucking facilitiesTrucking facilities Unloading Equipment (Bulk Cargoes Unloading Equipment (Bulk Cargoes

Unloaders/Container Quay Cranes)Unloaders/Container Quay Cranes)

Risks Terminal Operator/s FaceRisks Terminal Operator/s Face

CARGOESCARGOES:: Loss (Theft, Fire and Destruction)Loss (Theft, Fire and Destruction) ShortageShortage Wrong deliveryWrong delivery Untimely transfer of cargoesUntimely transfer of cargoes ContaminationContamination Damage Damage

Risks Terminal Operator/s FaceRisks Terminal Operator/s Face

ENVIRONMENTAL POLLUTIONENVIRONMENTAL POLLUTION: : LandLand AirAir SeaSea

Risks Terminal Operator/s FaceRisks Terminal Operator/s Face

THIRD PARTY CLAIMSTHIRD PARTY CLAIMS:: From CustomersFrom Customers From Terminal UsersFrom Terminal Users From Third Parties(Public at Large)From Third Parties(Public at Large)

Insure or Not to InsureInsure or Not to Insure

Choice depends on the company Choice depends on the company philosophy, financial standingphilosophy, financial standing

Municipal ports generally do not Municipal ports generally do not insure. But claims experiences have insure. But claims experiences have changed their thinkingchanged their thinking

Risks To InsureRisks To Insure

Industrial All RisksIndustrial All Risks: Material Damage : Material Damage and Business Interruptionsand Business Interruptions

Transport and Logistics Insurance Transport and Logistics Insurance CoverCover

(Covers e.g. cargo claims, bodily (Covers e.g. cargo claims, bodily injuries,pollution clean-up costs)injuries,pollution clean-up costs)

Directors and Officers Liability CoverDirectors and Officers Liability Cover Workmen’s Compensation InsuranceWorkmen’s Compensation Insurance

Concern Over Increasing Insurance Concern Over Increasing Insurance ClaimsClaims

““Insurance companies have had to Insurance companies have had to respond to increasing incidence of bodily respond to increasing incidence of bodily injury claims and handling equipment injury claims and handling equipment claims in ports” claims in ports”

““Response from TT Club,which covers 413 Response from TT Club,which covers 413 ports and terminal operators: Increase ports and terminal operators: Increase deductibles;encourage improvements in deductibles;encourage improvements in training and other preventive measures” training and other preventive measures” CEO Paul Neagle (Source:Ports & Harbours CEO Paul Neagle (Source:Ports & Harbours July 2008)July 2008)

Case Study(1):Case Study(1): Southampton Container Southampton Container Terminal, U.K.Terminal, U.K.

What HappenedWhat Happened : Incident: Gantry Crane : Incident: Gantry Crane Boom Collapses on the deck of a ship Boom Collapses on the deck of a ship (January 2008); (January 2008);

ConsequenceConsequence: No one was injured but all : No one was injured but all shipside operations immediately suspended shipside operations immediately suspended as a precaution as a precaution

ClaimsClaims : Honda car factory in Swindon had : Honda car factory in Swindon had to close as it ran out of gearboxes.Production to close as it ran out of gearboxes.Production of 600 –1,000 units of cars lostof 600 –1,000 units of cars lost

(Source: Ports & Harbour, July 2008)(Source: Ports & Harbour, July 2008)

Case Study 2:Case Study 2:

Felixstowe,U.KFelixstowe,U.K., ., 01 March 200801 March 2008

What Happened ?What Happened ? : Crane carrier broke loose : Crane carrier broke loose of its moorings and crashed into cranes at of its moorings and crashed into cranes at Languard terminal’s feeder berth in winds of Languard terminal’s feeder berth in winds of 128km/hour128km/hour

ConsequenceConsequence: Damaged two out of four quay : Damaged two out of four quay cranes and terminal operations disruptedcranes and terminal operations disrupted

Claims:Claims: Quay Cranes and Business Quay Cranes and Business InterruptionInterruption

(Source: Ports & Harbours, July 2008)(Source: Ports & Harbours, July 2008)

Case Study (3):Case Study (3):Choon Hoong III Tanker ExplosionChoon Hoong III Tanker Explosion

What happened ?What happened ? Whilst discharging xylene at Whilst discharging xylene at the Royal Dutch Shell Depot in Port Klang on 21 the Royal Dutch Shell Depot in Port Klang on 21 June 1992 an explosion occurred on board the June 1992 an explosion occurred on board the chemical tanker and caused a major fire and chemical tanker and caused a major fire and explosion.explosion.

Consequence:Consequence: 13 people dead or missing 13 people dead or missing *,including members of the crew ; “Ling said *,including members of the crew ; “Ling said rescuers feared 400 tonnes xylene was discharged rescuers feared 400 tonnes xylene was discharged into the river mouth, endangering a village into the river mouth, endangering a village nearby”* ;CHIII (a Singapore registered tanker) nearby”* ;CHIII (a Singapore registered tanker) was a constructive total loss beyond economic was a constructive total loss beyond economic repair; Terminal closed due to substantial property repair; Terminal closed due to substantial property damage.damage.

ClaimsClaims : Pollution clean-up, wreck removal, : Pollution clean-up, wreck removal, damage to third party properties other than Shell’s damage to third party properties other than Shell’s terminal losses amounted to USmillions.terminal losses amounted to USmillions.

Source: *Malaysia news report Sun Jun 21 1992Source: *Malaysia news report Sun Jun 21 1992

Case Study (4)Case Study (4)

ScenarioScenario: What would happen if phenol is discharged : What would happen if phenol is discharged from a vessel into the storage tank at a pumping rate from a vessel into the storage tank at a pumping rate faster than anticipated ?faster than anticipated ?

What would be the consequence ?:What would be the consequence ?: Non-event ?; Non-event ?; Potential product overflow ;Possible pollution of land Potential product overflow ;Possible pollution of land and sea; Cargo loss; Stop-work order; Fine by and sea; Cargo loss; Stop-work order; Fine by AuthorityAuthority

Potential claims:Potential claims: Cargo loss, Clean-up cost, disposal Cargo loss, Clean-up cost, disposal of waste cost and loss of use of storage tank ; of waste cost and loss of use of storage tank ;

Other expenses:Other expenses: Potential facility upgrading cost to Potential facility upgrading cost to prevent recurrenceprevent recurrence

(Note: Hypothetical case is created for learning (Note: Hypothetical case is created for learning experience )experience )

Case Study (5)Case Study (5) ScenarioScenario :Wrong hose to ship’s manifold :Wrong hose to ship’s manifold

connection during loading of vesselconnection during loading of vessel What would be the consequenceWhat would be the consequence: :

Contamination of cargoes in ship’s hold; Contamination of cargoes in ship’s hold; Possible explosion and consequential Possible explosion and consequential damagesdamages

Potential claimsPotential claims: Cargo claims, incurred : Cargo claims, incurred storage cost for contaminated cargoes storage cost for contaminated cargoes discharged back to shore, other claims discharged back to shore, other claims depending on actual scenario,legal costdepending on actual scenario,legal cost

(Note: Hypothetical case is created for learning (Note: Hypothetical case is created for learning experience)experience)

Case Study(6)Case Study(6)Collapse of Ship’s Derrick Collapse of Ship’s Derrick

Consequences ?

What Cannot Be Insured?What Cannot Be Insured?

Liabilities Under WSH Act 2006:Liabilities Under WSH Act 2006:

Individuals: Fine of up to $200,000 or Individuals: Fine of up to $200,000 or 2year imprisonment or 2year imprisonment or

both both

Company : Fine of up to $500,000Company : Fine of up to $500,000

What you must do to ensure safety What you must do to ensure safety and avoid infringing the WSH Act ?and avoid infringing the WSH Act ?

TAKETAKE

“ “Reasonable Practicable Measures”Reasonable Practicable Measures”

Risks Reduction MeasuresRisks Reduction MeasuresConduct HAZOP and take Remedial Conduct HAZOP and take Remedial

Measures :Measures :

EEliminate: Get rid of the hazard liminate: Get rid of the hazard completelycompletely

SSubstitution: Use other methods or less ubstitution: Use other methods or less dangerous chemicalsdangerous chemicals

EEngineeringngineering

AAdministrative: Job rotation, limited entry dministrative: Job rotation, limited entry to reduce exposureto reduce exposure

PPPE PE

Eliminating Risks: Some Eliminating Risks: Some Engineering ExamplesEngineering Examples

Install Gauges with Hi-Hi level AlarmsInstall Gauges with Hi-Hi level Alarms Ground protection: Install impervious layerGround protection: Install impervious layer Environment : Install closed system and Environment : Install closed system and

scrubbers scrubbers Use auto-spreaders for conventional Use auto-spreaders for conventional

container operationscontainer operations

Other Measures of Risk ReductionOther Measures of Risk Reduction

A Good HSE System must be in PlaceA Good HSE System must be in Place Continual monitoringContinual monitoring Continual improvementContinual improvement Audits ( Internal and External)Audits ( Internal and External) Engage your Business PartnersEngage your Business Partners

Engage Your Insurance Broker/sEngage Your Insurance Broker/s

Why ?Why ?

They are knowledgeable.They are knowledgeable.

They have the experience to They have the experience to

guide you.guide you.

They are backed by professionals.They are backed by professionals.

Engage them on a regular basis Engage them on a regular basis

What Is Expected of An Efficient What Is Expected of An Efficient Port ?Port ?

Berth on timeBerth on time Efficient turnaround of the vesselEfficient turnaround of the vessel Efficient logistics for replenishing the Efficient logistics for replenishing the

vesselvessel Efficient pilotage serviceEfficient pilotage service Quick turnaround of cargoesQuick turnaround of cargoes Efficient clearance at the gatesEfficient clearance at the gates Customer centricCustomer centric

EFFICIENCY OF VESSEL EFFICIENCY OF VESSEL OPERATIONSOPERATIONS

Vessels must be effectively served Vessels must be effectively served by the pilotage service for berthing by the pilotage service for berthing and unberthing of vesselsand unberthing of vessels

Vessels turnaround time is affected Vessels turnaround time is affected by efficiency of cargo handling by efficiency of cargo handling operationsoperations

Vessels turnaround time is also Vessels turnaround time is also affected by the allocation of storage affected by the allocation of storage spacespace

SIMULATIONSIMULATION

By Co-SpeakerBy Co-Speaker