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Cefic Logistics Seminar, 29 October 2015
Jos Verlinden
Logistics Risk Management in the Chemical Industry
Page 2
Logistics Risk Management in the Chemical Industry
1. Why logistics risk management is important
2. Roles of different stakeholders
3. What Cefic has done already
Transport risk assessment
Learning from accidents
New guidelines on logistics incident investigation
Page 3
European Chemical Freight Transport 250.000.000 Tons transported per year (all modes)
4.000.000 truck-trips per year
15.000 trucks per day
% Volume (T)
PIPELINES
Rail Accident in Wetteren (B) on 4 May 2013
http://www.youtube.com/watch?feature=endscreen&v=DzBFPF6FGCQ&NR=1
Page 4 – IEF Meeting – 26 June 2015
Page 4
Rail Accident in Wetteren (B) on 4 May 2013
Page 5 – IEF Meeting – 26 June 2015
Page 5
■ A freight train from Rotterdam (NL) to Terneuzen (NL) derailed
at 2 a.m at 500 m of city centre of Wetteren (close to Ghent)
■ 3 rail tankcars containing acrylonitrile overturned, leaked and caught fire
■ 1 fatality (due to inhalation of toxic vapors)
■ 2.000 persons evacuated / 400 persons hospitalized
■ Public live at Wetteren on hold for one week
Keeping our license to operate in chemical logistics is determined by our ability to manage the safety risks
Page 6
Logistics Risk Management is of key
importance for the Chemical Industry
Page 7
Risk Management in Chemical Logistics
All stakeholders have a role to play
International authorities
National authorities
Chemical companies
Logistics service providers (all modes)
Industry associations (Cefic, ECTA, national associations …)
…
Page 8
Promote cost effective, safe and sustainable logistics
Promote high safety, security and environmental standards, supporting the chemical industries’ Responsible Care Program
Develop and promote industry best practices
Develop and manage services and systems (SQAS, ICE, …)
Advocate the chemical industries’ position in relation to regulatory initiatives
Identify and evaluate societal issues and developments
Cefic Logistics Objectives
Page 9
Cefic - ECTA Responsible Care Partnership for transport operations
ECTA: European Chemical Transport
Association
ECTA Responsible Care
Core Principles
Continuously improve the environmental,
health and safety performance of our transport
operations of chemical goods to avoid harm to
people and the environment
Use resources and fuel efficiently and minimize
waste
Take adequate measures to ensure the
security of our operations
Collect data and report openly on our
performance, achievements and shortcomings
Listen, engage and work with people to
understand and address their concerns and
expectations
http://www.ecta.com/responsible-
care.aspx
Page 10
Main achievements in Logistics Risk Management
Best Practices
Guidelines Safety & Quality
Assessment Scheme
ICE Emergency
Response
Publication of guidelines
■ Behaviour Based Safety (BBS)
■ Safe loading and unloading
■ Transport equipment
■ Driver treatment
■ Subcontracting
■ Transperanto
■ Risk assessment
■ Sharing of learning
■ Accident investigation
A world class assessment
system for LSP’s
■ 5 SQAS modules
■ 70 accredited assessors
■ 8,500 assessments
■ 60,000 consultations
See http://www.cefic.org/Industry-support/Transport--logistics/
http://www.sqas.org/
Transport emergency
response network
Pan-European transport
emergency response scheme
to provide assistance to the
public emergency services in
case of accidents during the
transport of chemical
products in Europe.
Page 11
October 2013
October 2013
Guidance for Safety Risk
Assessment for
Chemical Transport Operations
Start
Stop
RISK ASSESSMENT FRAMEWORK
Definition of the system
Hazard identification
Probability analysis Consequence analysis
Risk estimation
Risk Criteria Risk evaluation
RISK EVALUATION
Acceptable Risk?
RISK REDUCTION
(additional) safety measures
Yes
No
RISK ANALYSIS
Risk reduction matrix
13
Total consequence
Ranking
Hazard x Exposure
Probability
Very unlikely Not likely Likely Frequent
Very high consequences (IV)
High consequences (III)
Moderate consequences (II)
Low consequences (I)
Cefic learning from accidents database on SQAS website see http://www.sqas.org/download-accidents
Example of an accident report
New Guidelines on Investigation of Logistics Incidents
- By extracting the learning from incidents and taking the appropriate
corrective actions, we can avoid that the same kind of events occur again
- Checking of the reports on the Cefic accident database indicated that root causes and corrective actions were not always properly identified
- Not all chemical/transport companies are familiar with the techniques of transport incident investigation and root cause analysis
Development of new Cefic/ECTA/FECC Guidelines
16
Page 17
« My birthday present is on its way to me »
… a trip for you
Remember: logistics is all around us …
Thank you for your attention! • IEF Meeting • 23 October 2015 Page 19