Safe and sustainable chemical transport & logistics Cefic s strategy and objectives
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1 Safe and sustainable chemical transport & logistics Cefic s strategy and objectives Seminarie Logistiek in de chemie 25 maart 2015, Laakdal Jos Verlinden, Directeur Transport & Logistiek Cefic
2 Who is Cefic? European Chemical Industry Council: Cefic is the voice of the European chemical industry, based in Brussels, representing 27,000 chemical companies that produce 21% of the world chemical products and employ over 1.2 million people Members 28 national federations 50 major international companies 150 sector groups and their member companies
3 European Chemical Freight Transport Ton products transported per year truck-trips per year trucks per day PIPELINES % Volume (T)
4 Cefic s Main Objectives in Logistics Promote cost effective and sustainable logistics Promote high safety, security and environmental standards, supporting the chemical industries Responsible Care Program Identify and evaluate societal issues and developments Advocate the chemical industries position in relation to legislative and regulatory initiatives 4
5 Cefic Logistics Best Practices Advocacy 5
6 Members Cefic Strategy Implementation Group Logistics 6
7 Cefic logistics initiatives are driven by its Chemical Logistics Vision 2020 Develop sustainable logistics strategies with a shift to alternative transport modes Continuously improve logistics safety by joining capabilities of chemical companies and logistics service providers throughout Europe Improve supply chain organisation and processes / supply chain collaboration 7
8 8 Chemical Logistics Vision 2020 Key Trends Chemical industry EU production levelling Production shift from EU to Asia EU consumption levelling Clustered & consolidated facilities EU faces global competition Focus on new growth strategies Logistics industry External factors Production shift Broader scope of LSPs Sustainability and safety Increased consolidation Widening geographical scope Focus on safety and security Technology advancement Focus on sustainable logistics Focus on safety in urban areas Increased supply chain security Insufficient investment in infrastructure Impact on Chemical Logistics Plan Global supply chain dynamics and complexity EU regulation to drive down GHG emissions Greater levels of control and risk mngt Increased need for compliance The need for optimized SC planning Increased process integration Source Changes in supplier base EU faces specialty chem. competition Extension of Supply Chains Increased sourcing complexity Regional volume concentration Relocation of EU production facilities Make Chemical production Deliver Administrative burdens for transport More competition for logistics capacities Increased infrastructure congestion Better deployment of logistics assets Network expansion of LSPs Shortage of qualified operators Solutions areas for Chemical Logistics Horizontal and vertical cooperation Use of integrated planning systems to improve logistics asset productivity and network reliability Rethink operating models Consider 3PL/4PL services Introduce sustainable logistics strategies and concepts Shift to greener transport modes Maximize vehicle utilization Consider product swaps or postponed production Ensure safe and secure operations Supply chain risk reduction Safety standards/culture Security procedures Voluntary industry HSE initiatives Professionalize supply chain organisation and processes
9 Cefic Logistics Vision 2020 Key achievements so far Develop sustainable logistics strategies with a shift to alternative transport modes McKinnon report on measuring & managing transport carbon emissions Intermodal transport network development report Stakeholder meeting July 2014 Single Wagon Loads: EC Stakeholder consultation - PwC study Nov 2014 Degassing of barges: technical soltutions - regulatory framework (CDNI) Continuously improve logistics safety by joining-up capabilities of all chemical companies and logistics service providers throughout Europe Best practice guidelines: transport risk assessment, safe (un)loading, safe driving, cargo securing, container weighing, accident investigation, safe tipping Safety of rail transport: Equipment guidelines and stakeholder meeting SQAS revision (CSR) / introduction in Gulf / China / Taiwan More sophisticated supply chain organisation and logistics processes EPCA/Cefic 2013 report on sustainable chemical supply chains 9
10 Cefic Logistics Priorities Priority issues 2015 Ongoing issues Logistics Risk Management Degassing Barges Intermodal Transport Network Development Single Rail Wagon Loads Rail Safety Regulations for Transport Dangerous Goods ICE Emergency Response Weighing Containers SQAS
11 Cefic SIG Logistics 2015 Priorities What is at stake? Logistics Risk Management Keep our license to operate Learn from accidents New regulatory developments Degassing Barges Forthcoming prohibition Need to develop sustainable solutions Close cooperation with regulatory bodies Rail Safety Several serious rail freight accidents Need to improve rail safety performance Risk of transport ban on certain routes or for high risk products Weighing Containers New legal requirement Potential high impact Promote uniform industry approach 11
12 What is SQAS? SQAS Modules A system to evaluate the SAFETY, QUALITY, SECURITY and ENVIRONMENTAL performance of logistics service providers based on a standardised ASSESSMENT SYSTEM carried out in a uniform manner by INDEPENDENT ACCREDITED SQAS ASSESSORS SQAS Transport Service SQAS Cleaning SQAS Warehouse = SQAS Rail ESAD Distributors in logistics 12
13 Number of SQAS assessments 13
14 SQAS 2015 Revision: Inputs for revision Corporate Social Responsibility (CSR) criteria: Social aspects: Non discrimination, performance review of employees, career plan, transparent recruitment process, etc. Fair business practices: Anti-corruption and bribery, conflict of interest, fraud, anti-competitive practices, etc. Reference to new Cefic guidelines: Best practice for safe (un)loading of Road Freight Vehicles BBS for safe driving Safety Risk Assessment for Chemical Transport Operations Investigating transport accidents/incidents and Root Cause Analysis Safe Working at Height More emphasis on Security risk analysis and mitigation Non conformance reporting and accident investigation Technology upgrade 14
15 Thank you for your attention! 15
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