Logistics Risk Management in the Chemical Industry

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

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 Page 2

3 European Chemical Freight Transport Tons transported per year (all modes) truck-trips per year trucks per day % Volume (T) PIPELINES Page 3

4 Rail Accident in Wetteren (B) on 4 May Page 4 IEF Meeting 26 June 2015 Page 4

5 Rail Accident in Wetteren (B) on 4 May 2013 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) persons evacuated / 400 persons hospitalized Public live at Wetteren on hold for one week Page 5 IEF Meeting 26 June 2015 Page 5

6 Keeping our license to operate in chemical logistics is determined by our ability to manage the safety risks Logistics Risk Management is of key importance for the Chemical Industry Page 6

7 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 ) Page 7

8 Cefic Logistics Objectives 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 Page 8

9 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 Page 9

10 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 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. Page 10

11 Guidance for Safety Risk Assessment for Chemical Transport Operations October 2013 October 2013 Page 11

12 Start RISK ASSESSMENT FRAMEWORK Definition of the system RISK ANALYSIS Hazard identification Probability analysis Consequence analysis Risk estimation RISK EVALUATION Risk Criteria Risk evaluation RISK REDUCTION (additional) safety measures No Acceptable Risk? Stop Yes

13 Risk reduction matrix Total consequence Ranking Hazard x Exposure Very high consequences (IV) High consequences (III) Moderate consequences (II) Low consequences (I) Probability Very unlikely Not likely Likely Frequent 13

14 Cefic learning from accidents database on SQAS website see

15 Example of an accident report

16 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 16

17 Page 17

18 New Cefic incident report form 18

19 Remember: logistics is all around us «My birthday present is on its way to me» a trip for you Thank you for your attention! Page 19 IEF Meeting 23 October 2015

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