FLEXITANK CODE OF PRACTICE

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GOALS OF PRESENTATION Inform participants about the Flexitank Code of Practice, why it is needed and its value to the industry Allow questions and discussion Explain the role of the COA through its Management Implementation Group Detail the Code’s 12 key points Review key elements of Flexitank/Container Combination testing Detail issues that will be addressed in the immediate future

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FLEXITANK CODE OF PRACTICE
Presented by J. Michael Rose, President, ROAM Fluid Solutions Houston at the annual AAR Damage Prevention & Freight Claim Conference June 29, Chicago GOALS OF PRESENTATION Inform participants about the Flexitank Code of Practice, why it is needed and its value to the industry Allow questions and discussion Explain the role of the COA through its Management Implementation Group Detail the Codes 12 key points Review key elements of Flexitank/Container Combination testing Detail issues that will be addressed in the immediate future A CODE IS NEEDED Rapid growth in the number of flexitanks
Perceived increase in number of incidents Need for a responsible approach from container owners and flexitank industry before regulators perceive need to impose regulations I rewrote headline Mike --- should we combine slides 3 and 4? VALUE OF CODE TO INDUSTRY
Reduce incident levels Increase awareness Increase credibility Convince shipping lines and railroads of value Eliminate low quality manufacturers INDUSTRY GROWTH Approximately 280,000 flexitank movements were recorded in 2009 Breakdown of usage 20% bulk wine 20% other food stuffs 60% chemicals (non-hazardous) Continued growth projected even given the economic downtown INDUSTRY GROWTH New manufacturers are being established around the world A significant number of flexitank operators, forwarders and service providers have entered the industry within the last 3-4 years Possible growth to 500,000 flexitank movements annually by 2014 WHY THE NEED? A CASE STUDY
Shipping lines are transporting more than 250,000 flexitanks each year Case study: Mearsk Line courtesy of Captain Gerrit Uiteijerse, Master Trained (Ret.), Global Cargo Consulting Management (cant decipheraddress) Maersk Line and Safmarine expect for 2010 all in
about 30 million container moves There are more than 159 established trade lanes connecting more than 250 ports worldwide with over 490Main Line vessels Is the text in yellow/orange correct? Doesnt make sense to me.. A transport as to be seen all the way
Does text make sense. Has to be seen? Many risks Gerrit Uiteijerse PFffff BRrrrrr July July
Global seasonal areas: Winter in the North is summer in the South PFffff July July BRrrrrr I.L.O. WHY IS THE STANDARD CONTAINER SO STRONG?
Bottom rail, corner posts, top rail and the sidewall are one welded unit Thus the container can carry heavy weights With a normal 28-ton cargo of cartons, bags, etc., the container is able to withstand even the hard port handling of placement on the ship and berth landing. However, if the sidewalls are damaged, the system is weakened. This occurs with a steady bulging of the sidewalls. The system looses stability and permanent deformations result. WHY FLEXITANK CERTIFICATION IS NEEDED
With the present carried quantity, we are very often over the limit of what that particular container, chosen for that shipment, can carry. It must be worthwhile to produce a high quality flexitank and bulkhead. Leakages could entail high costs and damage other cargo. Accidents due to inferior and less expensive production methods could reduce the acceptance or even the whole industry WHAT ARE WE TO ACHIEVE? The combination container, flexibag and bulkhead must be improved. With testing, a process of improving the bags has been initiated. Flexibags of minor quality should not be accepted. Depots are asked to deliver qualified containers. The (cargo?) transport on all transportation routes should not be more dangerous than other normal general cargo. With the working group in the COA (what?), we have set standards for a safe (bag-container combination?) combination of the bag and the container. The flexibag constructed for a certain quantity of cargo must have passed the test (what test?). INFLUENCES DURING A FLEXITANK TRANSPORT
Truck Bad roads, hard breaking, tight curves, driver should be familiar with liquid transport Rail - Shunting and hard pushes could occur (rail test) River barge - Rough handling only during loading and discharging Ocean vessel - Continuous ships movements; extreme in bad weather At terminal - Rough handling common, Straddle carrier, Gantry work At loading/discharging - Rough handling, placing in the Cell guides, dropping container BULGED AND LEAKING ROLLING MOVEMENTS AT SEA 20 CONTAINERS IN A HATCH AIMS OF THE CODE Implement controls to ensure:
Uniformity of flexitank integrity Provision of demonstrably safe equipment Introduce third-party registration/type approval (COA) FORMATION OF COA MANAGEMENT IMPLEMENTATION GROUP
MIG established by the COA Board of Directors Remit: To develop a COA-recommended Code of Practice MIG to include representatives from shipping lines, flexitank companies and the Classification Society sector What does Remit mean? (second bullet?) Does Classification Society need to be capitalized? Whose society is it? MANAGEMENT IMPLEMENTATION GROUP
Maersk Line Hapag Lloyd Trans Ocean Distribution Braid Lloyds Register ROAM Fluid Solutions (Ad hoc member/U.S. liaison) Should this say Management Implementation Group MEMBERS? THE CODE CONTAINS: A 12-point summary of key points
Guidelines on 5 key areas of flexitank testing, manufacturing and operation Wouldnt the code contain 12 key points rather than a 12-point summary of key points 12-POINT SUMMARY:POINT 1 Criteria for selecting containers to transport flexitanks: Age and condition 12-POINT SUMMARY:POINT 2 Flexitank design must comply withFlexitank Test Criteria Rationale: Equipment in use must be the same as equipment tested Who establishes criteria? 12-POINT SUMMARY:POINT 3 Flexitanks must be designed and selected in such a way to avert permanent negative influence on the cargo, the flexitank itself and the container. 12-POINT SUMMARY:POINT 4 The flexitank shall be marked with the following information, which must be visible when the containers right-hand door is opened: Unique flexitank number Manufacturers name or COA-supplied code Type approval/regulation number, which must be applied to the flexitank and the bulkhead 12-POINT SUMMARY:POINT 5 An A4 size Caution Label must be applied to the containers left-hand door Does caution label need to be capitalized? 12-POINT SUMMARY:POINT 6 Insurance terms for flexitank shipments must be checked by shipping lines legal departments; each shipment should be insured for a minimum of US$5 million by each party involved in the chain Did I rewrite this correctly? 12-POINT SUMMARY:POINT 7 Both the flexitank shipper and operator shall have documented emergency plans, and the flexitank operators emergency contact details shall be clearly marked I rewrote slightly 12-POINT SUMMARY:POINT 8 Flexitank manufacturers must produce and provide manuals detailing flexitank fitting, loading and discharge I added produce and provide rather than prepare 12-POINT SUMMARY:POINT 9 Flexitank operators shall, at a minimum, comply with instructions provided in the manufacturers manual I rewrote slightly --- make sure it means the same 12-POINT SUMMARY:POINT 10 The filling volume must be controlled by at least one of two methods: Calibrated measuring equipment; or, Weight of the cargo 12-POINT SUMMARY:POINT 11 The flexitank manufacturer must be ISO 9001:2000 certified 12-POINT SUMMARY: POINT 12 When a flexitank shipment is booked:
Cargo must be booked as non-hazardous bulk liquid in flexitank The Material Safety Data Sheet (MSDS) must be provided The name of the flexitank manufacturer/code + the approval number must be given The flexitank operator must comply with the COA Flexitank Code of Practice FLEXITANK/CONTAINER COMBINATION TESTING
At present, there is: No requirement for testing FCCs transported by ship, road or rail (except by rail in USA and China) No existing uniform global test methods/standards FLEXITANK/CONTAINER COMBINATION TESTING
A key goal of the Code of Practice is to develop an agreed FCC testing procedure that covers FCCs transported by ship, road and rail FLEXITANK/CONTAINER COMBINATION TESTING
The following 3 FCC test methods have been identified: Canadian/United Nations AAR General Information Bulletin No. 2 China Academy of Railway Sciences I added the four test methods to this slide--- I need to figure out how to make the four bullets into dashes FLEXITANK/CONTAINER COMBINATION TESTING
The Canadian test regulations as laid out in CAN/CGSB :2002 and UN recommendations on the transport of dangerous goods 14th rev with manual of tests and criteria 4th rev. ed. Amdt 1 (ST/SG/AC.10/11Rev. 4/Admt. 1) and tested at Grlitz, Germany This text doesnt make any sense at all. Can we break it up into individual statements? FLEXITANK/CONTAINER COMBINATION TESTING
AAR General Information Bulletin No 2: Rules and Procedures for test of new loads and bracing methods of material, revised February 2000 See my questions in actual slide FLEXITANK/CONTAINER COMBINATION TESTING
China Academy of Railway Sciences Can we say anything about this? IMPLEMENTATION Code of Practice implemented January 2010
Development of the Type Approval Process is under way Final test procedure is under way THE IMMEDIATE FUTURE Updated Code will be published after COAs May 20, 2010 meeting in London. It will include 3-4 primary amendments: Review of the Container Deformation Requirements Bulkhead must not touch door either during or after testing is completed Materials testing requirements THE IMMEDIATE FUTURE Classification Society submissions will be accepted for validation (with immediate effect) As published, the AAR, TTCT and Gorlitz rail tests are acceptable Research will be undertaken to compare the TTCI facility impact test results with those conducted at Gorlitz THANK YOU FOR YOUR ATTENTION
Why not add your photo here? J. Michael Rose, President, ROAM Fluid Solutions 2646 South Loop West, Suite 405 Houston, TX 77054 Office Mobile Fax