Bulk Supply Guidance Document

BULK SUPPLY GUIDANCE DOCUMENT

EUROPEAN MARINE BULK SUPPLY GUIDANCE DOCUMENT AUGUST 2005

1.0 CONTENTS 2.0 INTRODUCTION 3.0 PREPARATION FOR THE USE OF BULK SUPPLY 4.0 USE OF IBC’S 4.1 Container 4.2 IBC Lead Times 4.3 Receipt of IBC’s 4.4 Storage of IBC’s

4.4.1 Storage Area Bunding 4.4.2 Storage Area Stacking 4.4.3 Rotation of IBC's in Storage 4.4.4 Settlement of Paint in IBC Storage & Scheduling of Stirring 4.4.5 Cold Weather Storage of IBC's 4.4.6 Shelf Life

4.5 Paint Application from IBC's 4.5.1 Earthing 4.5.2 Venting 4.5.3 Paint Stirring and Recirculation 4.5.4 Skinning of Paint Products in IBC's 4.5.5 Addition of Thinners to IBC's 4.5.6 Polythene Covers for IBC's 4.5.7 Mixing of Two Pack Materials 4.5.8 Connecting IBC's to Airless Spray Pumps 4.5.9 Volume Area Control using IBC's

4.6 Preparation for Return of IBCs 4.7 Return of IBC's 5.0 IBC COSTS

5.0.1 Cleaning 5.0.2 Waste Paint Disposal

APPENDIX 1 Customer Letter


2.0 INTRODUCTION The use of Intermediate Bulk Containers (IBC's) or 200 litre drums for supply of paint has some significant advantages. The most important is the cost saving associated with the disposal of empty containers. There can also be a saving in handling and labour costs as well as a reduction in the volume of paint actually used, because of reduced paint wastage. Environmental issues are now persuading some ship owners, as well as shipyards and painting contractors, to order paint in IBC's or 200 litre drums. However, IBC's and 200 litre drums do require changes in working practices and procedures. There are also some changes of responsibility in looking after IBC's as opposed to 20 litre pails. This document is intended to clarify these areas of responsibility, and offers guidance on the correct handling and operation of IBC's. 3.0 PREPARATION FOR THE USE OF BULK SUPPLY The IBC Pre-Specification Checklist is designed to prompt questions when a new contract is tendered. It is suggested that discussions of requirements with European Marine Business Development team are also held. There can be technical reasons why a particular type of IBC is not suitable for a certain product or that a certain product is not suitable for IBC’s, therefore it is recommended that potential requirements are discussed with European Marine Business Development/ Technical/Supply before committing to the ability to supply.


International Paint Ltd - IBC Pre-Specification Checklist PAGE 1 1. Associate ♦ Associate Name 2. Customer ♦ Customer Name ♦ Contact ♦ Telephone Number 3. Product Details ♦ Product (Banner name, colour, code(s) ♦ Number of Components ♦ Approximate Volume of Paint By order/monthly/annual* ♦ Estimated Number of IBCs required 4. Previous Paint Packaging Type ♦ Pails, Drums, or IBCs If IBC’s, complete (a) – (f) (a) Manufacturer (b) Capacity (c) Inlet connections (type) (d) Outlet Connections :- Yes / No Outlet Valve Type :- - Ball Valve Yes / No - Butterfly Valve Yes / No (if yes, type/size) (e) Relief Valve Yes / No (f) Manlid Type : - 460mm. dia Yes / No - 400mm. dia Yes / No - Ring clamp type Yes / No - Swing bolt type Yes / No 5. Ancillary Equipment ♦ Filling & Discharge – Connections required for discharge (details) – Connections required for filling (details) – Twin feed pump for multi component products ♦ Mixing facilities in yard, please describe ♦ Heating – Does the product need heating? Yes / No – Give details of requirement heating type, etc. ♦ Handling & Storage

– Pallet racking – Dimensions of pallet racking

Yes / No

♦ Restrictions in Size

♦ Maximum Gross Weight?

♦ Handling Types (including capacity) – Pallet truck – Fork truck – Crane ♦ Required Contents 1000LT 800LT Other If other, please state

♦ Stacking Yes/No ♦ Sufficient on site storage capacity Yes/No ♦ Bunding Local Requirements: Storage ♦ Bunding Local Requirements: Yard


International Paint Ltd - IBC Pre-Specification Checklist PAGE 2

6. Suggested IBC ♦ 1000lt. Metercube ♦ 1000lt. Finncont Circular

*Delete as applicable

Technical Service contact: ____________________ (Print Name) Other requirements: Comments: Completed by:____________________ Date:____________________ (Print Name) Return Form To: EMEA Marine Business Development Department E-mail preferred (or fax: +44 (0) 191 401 2320)


4.0 USE OF IBC’S 4.1 Container The IBC container remains the property of Metano Ltd., from whom International Paint Ltd. rent the IBC's. In new building yards, paint is purchased by the yard or its painting contractor direct from International Paint Ltd. with the purchaser accepting responsibility for looking after the IBC in accordance with International Paint Ltd's 'Terms of IBC Supply'. In maintenance and repair yards, paint is typically purchased by the ship owner direct from International Paint Ltd. with the ship owner accepting responsibility for looking after the IBC in accordance with International Paint Ltd’s 'Terms of IBC Supply'. Ship owners usually then pass on this responsibility to the shipyard as part of their contract with the yard for painting the ship. All containers used conform to UN approved IBC design requirements, and are certified to carry hazardous goods up to an SG of 2.55, with special approvals for corrosives. In addition the IBC's are specified to meet ADR, RID and IfBt requirements for use within Europe. Although the IBC's have been tested for more extreme conditions than those envisaged during normal operation in shipyards, they are not intended for pressure discharge and have a working pressure of 1 atmosphere (ambient). They are, however, fitted with pressure and vacuum relief valves on the manlid. The container belongs to Metano Ltd and must be returned empty, intact and in good, clean, condition after use. There are two types of IBC in which products can be supplied, both of which have the capacity to hold 1000 litre of liquid: Dimensions SKU Capacity Height

/mm Length /mm

Width /mm

Tare weight/kg

Max.Gross weight/kg

Meter Cubed

/xMC 1000 1145 1150 1150 156 2756

Finncont Circular

/xTK 1000 1790 1200 1200 212 2800

Meter Cubed The SKU reflects the fill e.g.) KBA420/800MC (Fill 800lt), KBA420/1MC (Fill 1000LT) Finncont Circular The SKU reflects the fill e.g.) KBA420/800TK (Fill 800lt), KBA420/1TK (Fill 1000LT) There is currently a limited Finncont Circular IBC Hire Fleet (Approx 200)


Products which are more prone to settlement are supplied in Finncont circulars. This shape of IBC enables better re-incorporation of settlement residue back into the paint. In a meter cubed IBC there would be residue remaining in the corners. 4.2 IBC Lead Times

LEAD TIME Existing SKU

15 days + transit time

New SKU

PIF processing time (typically 6 weeks) + 15 days + transit time

4.3 Receipt of IBC’s Delivery to the agreed delivery point will be undertaken by International Paint Ltd. All IBC's can be off-loaded with fork lift trucks, and are fitted with retaining loops for fork lift tines (see pictures above). Upon receipt of the IBC's the exterior of the container should be checked for evidence of damage as follows: 1. Inspect the discharge pipe, valves, and any secondary closures, to confirm no

leakage has taken place.

2. Inspect the top of the container, confirm any relief valve(s), vents and manhole covers are secure, undamaged, and showing no signs of product leakage.

3. The base and frame (if fitted) should show no signs of damage. The UN certification plate, product label, and container identity plates, should be clearly legible.

All damages must be recorded and reported both to the haulier and to the International technical representative at the time of delivery. 4.4 Storage of IBC’s Storage of the IBC's is the responsibility of the yard, the painting contractor, the ship owner, or his nominated sub-contractor. 4.4.1 Storage Area Bunding There is a general requirement in Europe that IBC's are stored within a bunded area, to contain any loss from the containers. This bunded area should be designed to hold 110% of the volume of the largest container stored.


The type of bunding can be either a permanent arrangement, with an area of the yard surrounded by a suitable retaining wall and sealed floor, or a mobile bund. In some countries there may be an additional requirement for bunding around the area where the IBC is being used. A mobile bund suitable for the gross weight of a container holding 1,000 litres of paint would be required. Always check local regulations. 4.4.2 Storage Area Stacking Stacking limitations have been mentioned in 4.3 above. Limitations are given on the UN certification plate for each type of IBC. However, full containers should never be stacked on top of empty containers. 4.4.3 Rotation of IBC's in Storage Storage of IBC's must be properly controlled. The application of a 'First in, First out' policy is necessary to avoid containers being passed over, with paint standing for long periods of time. If this occurs there may be settlement and/or possible skinning over of paint in the IBC's. Because of the different volumes and dimensions of IBC’s compared to 20 litre and 5 litre pails, there may be a reduced shelf life for IBC’s to ensure product is fit for use. For clarification on SKU shelf lives please refer to the Marine Supply Department or Technical Operations Department. It is also essential to improve the cost efficiency by restricting the number of days hire charge for the IBC. 4.4.4 Settlement of Paint in IBC Storage & Scheduling of Stirring Regular stirring (every 3 weeks) or continuous stirring of product stored in bulk is required. SG measurements are required to ensure full stirring of the heavier pigmentation. Full records of batch numbers, dates and SG’s are required by Technical Service Representative. Records must be sent to EMEA Technical Manager. In addition units must be stirred immediately prior to use. Care should be taken to make sure that all paint supplied in IBC’s will be used at the dry docking. Part filled IBC’s cannot be returned. In newbuilding situations, painting may be spread over a period of months or years. It is not practical to hold IBC's in stock for these periods, because of paint settlement problems. In addition, long storage periods will incur excessive rental penalty charges. The yard, painting contractor, or shipowner's sub-contractor, are therefore advised to hold only sufficient paint in IBC's for their short term needs, and to forecast requirements for further IBC stock in a normal manner. This does not alleviate the need for proper stock control with a 'First in, First out,' policy. Paint settlement in the discharge pipe at the bottom of the IBC cannot be removed by stirring through the top manlid. Recirculation of paint in the IBC using an airless spray pump before/after/during mixing will help to reincorporate any settlement from the bottom of the IBC/discharge pipe. The International technical service representative on site will offer advice on this issue.


A full record of the batch numbers, dates of stirring, SG measurements etc should be kept. The local technical service representative must be trained to carry out SMT25B (SG measurement) and will need access to an ICI Pressure cup and accurate calibrated balance as well as solvent for cleaning. The local technical service manager should be able to provide training/information/equipment as required. 4.4.5 Cold Weather Storage of IBC's

In winter, low temperatures may increase the viscosity of the paint in IBC's to the extent that it cannot be applied without excessive thinning. Paint in IBCs should not be thinned. The IBC's should therefore be stored in heated areas such as paint halls or shops, or inside heated freight containers. International Paint Ltd's rental agent 'Metano Ltd' will be happy to discuss heating needs with individual users, with a view to providing appropriate heating equipment, at user's cost. The stainless steel container and volume of paint in an IBC means that it can take some time to reach a suitable application temperature. IBC's should therefore be put into heated storage in reasonable time before use. Applying direct heat to the outside of IBC's immediately before use in an attempt to warm up paint is dangerous and unacceptable. 4.4.6 Shelf Life The shelf life of an IBC or 200 litre drummed product can be less than for a 20 litre pail. It is the responsibility of the Technical Service representative to ensure the yard, painting contractor, the ship owner or his nominated contractors are aware of the shelf life of the bulk supplied products. 4.5 Paint Application from IBC's 4.5.1 Earthing IBC's and associated equipment such as spray pumps must be properly earthed via good metal to metal contact to avoid static build-up and subsequent discharge. 4.5.2 Venting The IBC must be vented (by opening the vent cap on top of the container) during use to prevent damage as a result of vacuum creation within the IBC. The vent opening itself should be protected to avoid contamination of the paint by rain, blasting grit, etc, and the vent cap replaced when the IBC is not in use.

4.5.3 Paint Stirring and Recirculation Prior to use, paint in IBC's should be thoroughly stirred until the product is homogeneous in line with bulk supply procedures. This is done by opening the manhole cover on top of the IBC and inserting an air driven paddle or jiffy type mixer. Thorough stirring to disperse settled solids at the bottom of the IBC is essential, and it is important to ensure the stirrer used is appropriate for the product being stirred. International will advise users on this issue if required. A record of all stirring should be kept.


Recirculation of paint in the IBC using an airless spray pump before/after/during mixing will help to reincorporate any settlement from the bottom of the IBC/discharge pipe. 4.5.4 Skinning of Paint Products in IBC's Certain types of paint such as alkyds are susceptible to skinning after long periods in storage. Skinning can be checked by looking through the IBC manhole. If it has occurred, the skin should be carefully and completely removed with a paint scraper or pallet knife, taken from the IBC, and disposed of in a suitable manner. Once usage of an IBC of product with the potential to skin has started, it must be used very quickly. 4.5.5 Addition of Thinners to IBC's If thinners are required, their use must be agreed by the International technical service representative on site. Thinners must not be used for 2 pack products. 4.5.6 Polythene Covers for IBC's Polythene covers may be supplied and used to protect the upper parts of the container from contamination with paint overspray in a drydock situation. They should be used for this purpose and disposed of in accordance with good practice. Dirty covers must not be placed in the empty IBC, or returned with the empty IBC. 4.5.7 Mixing of Two Pack Materials Certain 2-pack materials such as shop primers, anticorrosive epoxies, and tank coating products, may be supplied in bulk containers. Sometimes both the base and curing agent are supplied in IBC's, sometimes only the base is in an IBC and the curing agent is in a 200 litre drum. However for all 2-pack materials, the performance is dependant upon the base and curing agent being mixed in the correct ratios. In these situations, specialist spray equipment and metering equipment must be used to apply the paint. Both the base and curing agent are normally pumped directly from the IBC's to a twin feed airless spray dispensing pump, such as a 'Hydracat'. These machines can be set up to pump both components in the correct ratio, in separate fluid lines, to a static mixer. A single fluid line then takes the mixed paint to the spray gun. A separate pump is often used to pump solvent for cleaning out the fluid lines. When using IBC's for 2-pack paint application, the proper equipment must be available to dispense, mix and apply the coatings, and the mix should be regularly checked. Under no circumstances are 2-pack products to be mixed inside an IBC. Thinners must not be used for 2 pack products in an IBC.


4.5.8 Connecting IBC's to Airless Spray Pumps IBC's have a discharge pipe at the bottom of the container fitted with two outlet valves. These outlets all have a 50mm 'Kamlok' type male connector to take a standard 50mm 'Kamlok' type female coupling.

To connect an airless spray pump or pumps to an IBC, simply connect a flexible hose between the IBC outlet valve and the suction connection of the airless spray pump, and open the IBC outlet valve (ensure the vent cap in the top of the IBC is open to prevent a vacuum build up once application starts). Flexible hose and couplings to connect IBC's and spray pumps are not supplied with the IBC. The user should ensure correct couplings are available. Adapters are available to step down the connection size. 4.5.9 Volume Area Control using IBC's When applying antifouling paint in drydocks, correct film thickness is normally achieved by volume area control. Using this technique, the underwater hull is divided into sections. The correct amount of antifouling paint is then allocated and sprayed onto each section. If paint is supplied in 20 litre pails, physical allocation of the paint for each division of the ship is straightforward. When paint is supplied in IBC's control requires more care. The user should carefully consider placement of the IBC's in the dock, the number of pumps to be operated from each IBC, and the length of fluid lines required for spraying from each IBC. The shorter the line, the easier it is to spray. Measuring the quantity of paint actually used from each IBC is vital for good volume area control. A special twin manifold fitted with flow meters can be attached to the outlet valve. This will accurately record the volume of paint delivered through the manifold. Where two or more spray pumps are used for each IBC, this is the only method of accurately measuring paint use, and their use is mandatory. Where the user intends to spray like this, they should consult with International who will arrange for manifolds fitted with these meters to be supplied by Metano Ltd. An additional rental charge may be levied for the use of these manifolds. The International technical service representative can advise the user further on volume area control requirements. 4.6 Preparation for Return of IBCs Preparation for return transportation is the responsibility of the yard, painting contractor, or ship owner’s sub-contractor, who must ensure IBC's comply with relevant legislation. This does not permit transportation of partially full, or dirty IBC's. These will be rejected by Metano Ltd/International Paint Ltd. The IBC should be drained and if possible rinsed with the appropriate paint thinners or cleaners to minimise product residues. The user should then dispose of this material in a suitable manner.


Prior to closing the vessel for transport, a maximum of 5 litres of product thinners or cleaners should be added to the IBC to stop paint drying and blocking discharge pipes and valves. To comply with transport legislation 0.5% is the maximum product solvent residue allowed in empty IBC's. This equates to 5 litres in a 1000 litre IBC. All closures must be made secure. These include the manhole, the outlet valves, the secondary closures, and the vent cap should be inserted where appropriate. The local International Paint office should be informed that the IBC is ready for collection and return to Metano Ltd. for cleaning. Metano are only licensed to clean with water based cleaning products, therefore it is advisable to rinse out paint residues with solvent prior to the IBC leaving the shipyard. This will also make it easier to fully empty the IBC prior to return to Metano Ltd for cleaning. There has been a history of yards transferring their waste disposal problems back to Felling. This causes a significant increase in the gate cost of IBC’s from Felling as the waste disposal and extra cleaning costs are added back into IBC charges within the gate cost. A typical cleaning time would be four days for an IBC in good condition and hire of the IBC continues during this time. In addition any waste disposal will be charged back to the country associate. 4.7 Return of IBC's IBC's should be returned in accordance with the instructions of International, by the return date detailed on the delivery note. Late return of the IBC will incur the penalty payments highlighted in the Customer Letter. The outside of the IBC must be free from contamination, to ensure compliance with transport regulations. Any protective cover used to keep the IBC clean during use should be disposed of according to local regulations governing such disposal. The container should be inspected to confirm that all seals and caps are secure and that there are no signs of mechanical damage. This should be confirmed by signature of the haulier before the IBC leaves the site. The IBC must be empty for legal transportation - less than 5lt of liquid paint/thinners remaining. Any excess paint must be drained and appropriately disposed of by the shipyard/customer before arranging return of the IBC. Health and Safety Data Sheets relating to the product originally supplied in the IBC must also be made available for transport of the empty IBC. Metano Ltd. are not licensed to handle waste paint, therefore IBC’s must be emptied so that less than 5 litres of paint remain. In addition international transportation legislation requires IBC’s to be empty during transportation. Disposal costs for IBC’s returned with ILLEGAL quantities of paint will be charged to the country associate. If this becomes a persistent problem supply of IBC’s to the offending country or yard will be suspended.


5.0 IBC COSTS 5.0.1 Cleaning Cleaning charges once IBCs have been returned to Metano Ltd consist of hire charges for the 4days cleaning time + cleaning charges for the IBC.

Metre Cubed

Finncont Circular

Cleaning 142.00 € 142.00 € 4d Hire Charge 8.00 € 8.00 €

5.0.2 Disposal Metano Ltd. are not licensed to handle waste paint, therefore IBC’s must be emptied so that less than 5 litres of paint remain. In addition international transportation legislation requires IBC’s to be empty during transportation. Disposal costs for IBC’s returned with ILLEGAL quantities of paint will be charged to the country associate. If this becomes a persistent problem supply of IBC’s to the offending country or yard will be suspended.


APPENDIX 1

CUSTOMER LETTER Dear Brodosplit

Terms of IBC Supply

We refer to the supply by us to you of Intergard 343 and Intershield 300 using intermediate

bulk storage containers (“IBC(s)”) and write to confirm the following:

1. The IBC(s) will be delivered by us to Brodosplit Shipyard (“the site”) free of charge.

2. Risk in the IBC(s) and their contents will pass to you upon delivery and, whilst they

are held at your risk, will be insured by you under a standard All-Risks Insurance

Policy to the value of Euros 11,000 per IBC. Risk in the IBC(s) will remain with you

until the IBC(s) is returned by you to us in accordance with our instruction. Property

in the IBC(s) will at all times remain with the owner of the IBC(s), Metano Containers

Limited of Loughan-Y-Yeigh, The Garey, Ramsay, Isle of Man (“the Owner”) from

whom we rent the IBCs.

3. You shall strictly follow the attached guidelines headed “Guidelines for the use of

IBCs” and any additional instructions which we may give from time to time.

4. You will allow our representative or representatives of the Owner access to the site at

all reasonable times to inspect the IBC(s).

5. The IBC(s) must not be refilled on the site after emptying. Once they are empty, they

should be prepared for transport, as described in the guidelines, and we should then be

notified that they are ready for collection.


6. In the event that any IBC is not returned within thirty days of delivery date an

additional surcharge of 2,00 € will apply for any extra day.

7. You hereby indemnify us against all claims including third party claims for loss,

damage or expenses brought against us caused by or related to the use by you of the

IBC(s) at the site.

8. In the event that you have requested delivery of the IBC(s) to the premises of your

sub-contractor, you shall ensure that your sub-contractor gives a written undertaking

to abide by the terms of this Agreement and shall provide a copy of such undertaking

to us upon request.

9. Save as provided for in this letter the supply of coatings in such IBC(s)shall be

governed by our standard conditions of sale.

Yours sincerely,

For and behalf of the Company


Documents

Bulk Supply Guidance Document