International Logistics Developments: The Example of Dangerous Goods. Assoc. Prof. Dr. Dilay Çelebi, ITÜ Essen,
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1 International Logistics Developments: The Example of Dangerous Goods Assoc. Prof. Dr. Dilay Çelebi, ITÜ Essen,
2 Transport of Dangerous Goods The transportation dangerous goods deserves special attention primarily due to the risks associated with this activity. A dangerous good: Any substance or material capable of causing harm to people, property, and the environment (US DOT). 2
3 Transport of Dangerous Goods: Modal Regulations WP 15 / RID AND (Genova) IMO (London) ICAO (Monreal) IAEA (Wien) ADR RID ADNR/ADN IMDG-Code ICAO-TI (IATADGR) ADR: European Agreement Concerning the International Carriage of Dangerous Goods by Road 3
4 ADR Requirements Rules and regulations for transportation responsibilities of all parties Certfication of all vehicles and equipments ADR certfication of drivers 4
5 ADR Parties Signatories (1957): Austria, Belgium, France, Germany, Italy, Luxembourg, Netherlands, Switzerland, the UK Final party: Turkey 5
6 Turkey: History Local Regulations for Transport of Dangerous Goods in Turkey Law on Administrative Structure and Duties of Ministry of Transportation Law on Approval to Join the ADR Convention 1983: Revisions: Increased security regulations Law of Highway Transportation : Current target 2009: Intented date to put this regulation in force 6
7 Current Target The Regulation on Transport of Dangerous Goods by Road was published in the Official Journal on 31 March But, The regulation will enter into force step by step starting from 2011 to The Regulation Entered into force from 1 of January 2011 Transition period for implementation of provisions on marking, labeling and packing until 1 January 2012 Transition period for provisions on road vehicles and units until 1 January 2013 The major reason for this is that, the domestic transport sector needs a sufficient time to adopt its current situation to the provisions stated in the Regulation. Need time to establish the necessary system for full implementation. 7
8 Purpose To develop a general overview regarding the dangerous goods transportation sector in Turkey with relevance to integration of ADR To support practices to improve the efficiency and security of dangerous goods transports To identifying issues and problems concerning the application and control of rules and regulations in line with the road transport legislation of the European Union, road safety and social, fiscal, and technical rules. 8
9 Research Questions What is the current state of dangerous goods transportation sector in Turkey? What are the existing rules and regulations concerning dangerous goods transports on road? What are the application and control situation of DG regulations in Turkey? What are the problems concerning application and control of rules and regulations in Turkey? What are the current problems related to operations of dangerous goods transportation? What implementation barriers exist to reach the desired flow? 9
10 Method Context: Transport of dangerous goods by road Face to face interviews took place in March April 2011 with competent authorities, one industry trade association, and six leading leading companies providing international DG transportation service. 10
11 Questionnaire Prepared in line with ADR agreement to cover Section 5 (Consignment procedures), Section 7 (Provisions concerning the conditions of carriage, handling, loading, and unloading), Section 8 (Requirements for vehicle crew, equipment, operation and documentation) Section 9 (Requirements concerning the construction and approval of the vehicles). The following key areas were identified for investigation: volume, sector size, organizational structure, company, size, handling, transportation volumes, expectations, encountered problems, regulatory standards, operations management systems, certification and education 11
12 Overview Comp. Modes Other services Certificates DG Class C1 C2 Road, air, sea, rail, interm odal Road, air and maritime warehousing, customs clearance, insurance, and logistics consulting C3 Road order management, general warehouse ISO 9001, ISO 10002, ISO14001, ADR 3-6, 8,9 International trade support ADR, K Fleet Size ADR, C-2, R-2 2,3 240 C4 Road Warehousing, forwarding ADR, UND C5 Road, air, sea Customs clearance, and insurance services L C6 Land, sea Production and filling L
13 Types and Routes Class 3 Flammable liquids: 90% of 22m DG transported 13
14 Risk and Safety Class 3 materials (Flammable Liquids) : most risky DG class that incurs the highest risks during transportation and handling. Class 6 (Toxic substances): Highest risk for environment. Transportation Loading Un-loading Storage No Accident Statistics for DG! 14
15 Problems and Expectations 1. Driver Certfication: 1. Insufficiency of training and testing companies 2. Time required for certfication: 5-6 months 2. Low control standards 3. Lack of ADR implementation preparations uncertified vehicles 4. Uncertainties in auditing and inspection processes Safety advisor: An ambiguous term 15
16 Lack of Control Necessary additional national legislation and administrative arrangements: 1. Definition and Organization of competent authorities 2. Fixed competence of authorities 3. Legislation for enforcement and fines 4. Trained enforcement officers 5. Procedures for approval, testing and periodical inspections of vehicles, tanks and packaging 6. Procedures for exemptions 7. Close cooperation between participants and authorities 16
17 Training and Technology Four companies comply with the ADR regulations: obtain training from internationally certified trainers and renew the process under legal conditions. Other two companies provide self training courses within the organization. Most companies do not have a separate operational control system to manage the hazardous material transport processes and technologies. 17
18 Findings Long and costly implementation period: Above 2 billion Euros for adopting and certfiying 20K vehicles Trainers certfication: Insufficient resources Lack of a defined plan: Lack of necessary information and statistics Operational efficiency: Reduced cost of technology Risk control Monitoring: Revised regulation and control system More and better structured random controls need to be regulated 18
19 Identification of Target Issues in Turkey s ADR Integration Purpose: to identify target issues need to be handled on implementation of ADR legislation in Turkey in terms of regulations most likely to create hurdles for a smooth and straightforward implementation process. 19
20 ADR Integration Hierarchcy ADR Integration Process ADR4. Packing and Tank Provisions ADR5. Consignment Procedures ADR7. Provisions for Carrying, Loading, Unloading Inspection and Control Conformation of Vehicles ADR8. Requirements for Vehicle Crew ADR Safety Adviser ADR9. Requirements for Construction and Approval of Vehicles ADR4.1.Use of packagings and portable tanks ADR5.2.Marking and Labeling ADR Mixed Loading Restrictions 1.8.Determination of Competent Authorities ADR.1.5. Derogations ADR.8.2. Management of Testing Operations ADR Preperation of Implementation Regulations ADR.9.Determinatio n of Competent Authorities ADR6. Construction, testing and approval of packagings ADR5.4. Documentation ADR Precautions wrt Food Stuff and Other Consumables ADR Administrative Controls of Inspections ADR.8.1. Determination of Vehicle Specifications ADR.8.5. Trainings Related to Class 1 and 7 items ADR Training of Safety Advisors ADR.9.Preparation of Requirements ADR.8.6.Determinati on of road tunnel restrictions and marking of tunnels ADR Limitations of the Quantities Carried ADR Training of Inspection Bodies ADR Management of Testing ADR Provisions concerning Loading, Unloading, and Handling ADR Determination of Common Curriculum ADR8.4.Requiremen ts Concerning the Supervision of Vehicles 20
21 Individual Weights of Main Factors 50,00% 45,00% 40,00% 35,00% 30,00% 25,00% 20,00% 15,00% 10,00% 5,00% 0,00% ADR4. Packing and Tank Provisions ADR5. Consignment Procedures ADR7. Provisions for Carrying, Loading, Unloading Inspection and Control Conformation of Vehicles ADR8. ADR Safety Requirements for Adviser Vehicle Crew ADR9. Requirements for Construction and Approval of Vehicles Expert 1 Expert 2 Expert 3 Expert 4 Expert 5 21
22 Combined Weights of Main Factors 22
23 Combined Weights of Sub Factors 0,9 0,8 0,7 0,6 0,5 0,4 0,3 0,2 0,1 0 23
24 Combined Weights of Sub Factors (Weigthed) 0,25 0,2 0,15 0,1 0,
25 Dangerous goods transportation sector in Turkey COSTS Employee Productivity Systematization Better quality control Improved Auditing Operational Excellence 25
26 The input and output measures INPUTS OUTPUTS 26
27 Data Revenue Number % Number of Number % (TRY) employees < 2.5 M 24 34% < % M 19 27% % M 12 17% % M 5 7% % M 3 4% % M 1 1% > % >15 M Number of Number % 7 10% drivers Vehicles Number % < % < % % % % % % % > % 27
28 Findings efficiency Revenue 28
29 Findings: Target values Input (I) / Output (O) Current Level Target level Difference Change (%) # of employees (I 1 ) Number of drivers (I 2 ) Number of towing vehicle (I 3 ) Number of trailer (I 4 ) Annual income (O)
30 Findings: Impact of the Certification N Mean S.D. With Quality Certfication Without Quality Certfication t: 2.987; p:
31 Findings: Impact of the Certification ADR N Mean S.D. Certficati on Group A >50% Group B <50% Group C F: 1.970; p:
32 Limitations 1. Measures used as inputs and outputs in the study can be extended to cover operational expenditures, quality indicators and capacity utilization rates for a more comprehensive analysis. 2. The sample of respondents is only gathered from companies located in a relatively small geographic region. 3. Further qualitative research might be done to investigate and contrast the operational differences in organizations. 32
33 Further Directions Training Requirement Analysis and Policy Generation Simulation of ADR Intergation process to evaluate the trade offs. 33
34 Thank you! International Logistics Developments: The Example of Dangerous Goods Assoc. Prof. Dr. Dilay Çelebi, ITÜ
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