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Bulk Cargoes Terminal Types of bulk cargoes terminals Types of cargoes handled at such facilities Risks associated with such facilities Insurance coverage Preventive measures to mitigate such Risks Efficient port operations Simulation studies Tour of Jurong Port Types of Bulk Cargoes Terminals Multi-purpose Terminals Dedicated Bulk Cargoes Terminals. Multi-Purpose Terminals Jurong Port is a good illustration of a multi-purpose terminal We handle: a) General cargoes; b) Dry bulk cargoes; c) Liquid bulk cargoes; and d) Containers Dedicated Bulk Cargoes Terminal Liquid Bulk Cargoes Facilities: a) For Petrochemicals; b) For Petroleum Types of Cargoes Handled Multi-Purpose Terminal (Jurong Port) a) b) c) d) e) f) g) h) i) Cement Copper Slag Fertilisers Sand Lubricants Steel products (H beams, re-bars, steel plates) Machineries/Equipment Ship spares and ships supplies Containerised cargoes Types of Cargoes Handled Dedicated Liquid Bulk Cargoes Terminal a) Solvents (Xylene, Toulene, Methanol) b) Phenol c) TEL d) Styrene Monomer e) Vinyl Chloride Monomer f ) Acids Risks Associated With Cargoes Health Risks Fire & Reactivity Risks Environmental pollution risks Risks Associated with Cargoes Product name: Xylene - colourless, sweet smelling liquid used in printing, rubber and leather industries and as a cleaning agent for steel and silicon wafers Hazards: Highly flammable (above 27 degrees C explosive vapour/air mixtures may be formed), may cause headaches, dizziness, confusion and change in sense of balance Toxicity: Toxic to aquatic animals. High concentrations may cause increased numbers of deaths, delayed growth and development. Same concentrations may cause damage to mothers Risks Associated With Cargoes Product Name : Phenol (old name carbolic acid) is a colourless liquid with a sweet smell. Used as a disinfectant for sterilising wounds, surgical dressings and instruments , as raw material for medicinal drug as aspirin , widely used in manufacture of insecticides, dyes. Hazards : Acute poisoning by ingestion, inhalation or skin contact may lead to death. Toxicity : Systemic poison and a serious health hazard by prolonged exposure Risks Associated with Cargoes Product Name: Tetraethyl Lead Health hazard: Inhalation can cause convulsions, dizziness, headache, vomitting, weakness, unconsciousness Effects of repeated exposure: may cause toxicity to human reproduction or development Toxicity : Toxic to aquatic organisms and may cause long term effects in aquatic environment Chemical dangers: decomposes on heating producing toxic fumes Risks Associated with Cargoes Product: Vinyl Chloride, a colourless gas with mild sweet odour; a manufactured product used to make pvc (polyvinyl chloride) Hazards : Cause dizziness. Breathing high levels will cause you to pass out and extremely high levels may cause death. Toxicity: A known carcinogen Risks Terminal Operator/s Face INFRASTRUCTURE : Destruction or Damage What are these infrastructure ? Berths Warehouses or Storage Tanks Drumming facilities Trucking facilities Unloading Equipment (Bulk Cargoes Unloaders/Container Quay Cranes) Risks Terminal Operator/s Face CARGOES: Loss (Theft, Fire and Destruction) Shortage Wrong delivery Untimely transfer of cargoes Contamination Damage Risks Terminal Operator/s Face ENVIRONMENTAL POLLUTION: Land Air Sea Risks Terminal Operator/s Face THIRD PARTY CLAIMS: From Customers From Terminal Users From Third Parties(Public at Large) Insure or Not to Insure Choice depends on the company philosophy, financial standing Municipal ports generally do not insure. But claims experiences have changed their thinking Risks To Insure Industrial All Risks: Material Damage and Business Interruptions Transport and Logistics Insurance Cover (Covers e.g. cargo claims, bodily injuries,pollution clean-up costs) Directors and Officers Liability Cover Workmen’s Compensation Insurance Concern Over Increasing Insurance Claims “Insurance companies have had to respond to increasing incidence of bodily injury claims and handling equipment claims in ports” “Response from TT Club,which covers 413 ports and terminal operators: Increase deductibles;encourage improvements in training and other preventive measures” CEO Paul Neagle (Source:Ports & Harbours July 2008) Case Study(1): Southampton Container Terminal, U.K. What Happened : Incident: Gantry Crane Boom Collapses on the deck of a ship (January 2008); Consequence: No one was injured but all shipside operations immediately suspended as a precaution Claims : Honda car factory in Swindon had to close as it ran out of gearboxes.Production of 600 –1,000 units of cars lost (Source: Ports & Harbour, July 2008) Case Study 2: Felixstowe,U.K., 01 March 2008 What Happened ? : Crane carrier broke loose of its moorings and crashed into cranes at Languard terminal’s feeder berth in winds of 128km/hour Consequence: Damaged two out of four quay cranes and terminal operations disrupted Claims: Quay Cranes and Business Interruption (Source: Ports & Harbours, July 2008) Case Study (3): Choon Hoong III Tanker Explosion What happened ? Whilst discharging xylene at the Royal Dutch Shell Depot in Port Klang on 21 June 1992 an explosion occurred on board the chemical tanker and caused a major fire and explosion. Consequence: 13 people dead or missing *,including members of the crew ; “Ling said rescuers feared 400 tonnes xylene was discharged into the river mouth, endangering a village nearby”* ;CHIII (a Singapore registered tanker) was a constructive total loss beyond economic repair; Terminal closed due to substantial property damage. Claims : Pollution clean-up, wreck removal, damage to third party properties other than Shell’s terminal losses amounted to USmillions. Source: *Malaysia news report Sun Jun 21 1992 Case Study (4) Scenario: What would happen if phenol is discharged from a vessel into the storage tank at a pumping rate faster than anticipated ? What would be the consequence ?: Non-event ?; Potential product overflow ;Possible pollution of land and sea; Cargo loss; Stop-work order; Fine by Authority Potential claims: Cargo loss, Clean-up cost, disposal of waste cost and loss of use of storage tank ; Other expenses: Potential facility upgrading cost to prevent recurrence (Note: Hypothetical case is created for learning experience ) Case Study (5) Scenario :Wrong hose to ship’s manifold connection during loading of vessel What would be the consequence: Contamination of cargoes in ship’s hold; Possible explosion and consequential damages Potential claims: Cargo claims, incurred storage cost for contaminated cargoes discharged back to shore, other claims depending on actual scenario,legal cost (Note: Hypothetical case is created for learning experience) Case Study(6) Collapse of Ship’s Derrick Consequences ? What Cannot Be Insured? Liabilities Under WSH Act 2006: Individuals: Fine of up to $200,000 or 2year imprisonment or both Company : Fine of up to $500,000 What you must do to ensure safety and avoid infringing the WSH Act ? TAKE “Reasonable Practicable Measures” Risks Reduction Measures Conduct HAZOP and take Remedial Measures : Eliminate: Get rid of the hazard completely Substitution: Use other methods or less dangerous chemicals Engineering Administrative: Job rotation, limited entry to reduce exposure PPE Eliminating Risks: Some Engineering Examples Install Gauges with Hi-Hi level Alarms Ground protection: Install impervious layer Environment : Install closed system and scrubbers Use auto-spreaders for conventional container operations Other Measures of Risk Reduction A Good HSE System must be in Place Continual monitoring Continual improvement Audits ( Internal and External) Engage your Business Partners Engage Your Insurance Broker/s Why ? They are knowledgeable. They have the experience to guide you. They are backed by professionals. Engage them on a regular basis What Is Expected of An Efficient Port ? Berth on time Efficient turnaround of the vessel Efficient logistics for replenishing the vessel Efficient pilotage service Quick turnaround of cargoes Efficient clearance at the gates Customer centric EFFICIENCY OF VESSEL OPERATIONS Vessels must be effectively served by the pilotage service for berthing and unberthing of vessels Vessels turnaround time is affected by efficiency of cargo handling operations Vessels turnaround time is also affected by the allocation of storage space SIMULATION By Co-Speaker