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Cefic Logistics Seminar, 29 October 2015 Jos Verlinden Logistics Risk Management in the Chemical Industry

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Page 1: Logistics Risk Management in the Chemical Industry - · PDF filePage 2 Logistics Risk Management in the Chemical Industry 1. Why logistics risk management is important 2. Roles of

Cefic Logistics Seminar, 29 October 2015

Jos Verlinden

Logistics Risk Management in the Chemical Industry

Page 2: Logistics Risk Management in the Chemical Industry - · PDF filePage 2 Logistics Risk Management in the Chemical Industry 1. Why logistics risk management is important 2. Roles of

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

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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

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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

Page 5: Logistics Risk Management in the Chemical Industry - · PDF filePage 2 Logistics Risk Management in the Chemical Industry 1. Why logistics risk management is important 2. Roles of

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

Page 6: Logistics Risk Management in the Chemical Industry - · PDF filePage 2 Logistics Risk Management in the Chemical Industry 1. Why logistics risk management is important 2. Roles of

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

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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 …)

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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

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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

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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.

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October 2013

October 2013

Guidance for Safety Risk

Assessment for

Chemical Transport Operations

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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

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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)

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Cefic learning from accidents database on SQAS website see http://www.sqas.org/download-accidents

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Example of an accident report

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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

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New Cefic incident

report form

http://www.sqas.org/

Page 19: Logistics Risk Management in the Chemical Industry - · PDF filePage 2 Logistics Risk Management in the Chemical Industry 1. Why logistics risk management is important 2. Roles of

« 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