Responsible Care in Chemical Logistics Jos Verlinden, Director Transport & Logistics, Cefic ITCO General Meeting Dublin, 12 September 2006

2 Agenda Introduction of Cefic Best Practices BBS / Working at height Transperanto SQAS / CDI European Cleaning Document (ECD) ICE Emergency Response

3 European chemical industry 1/3 of world production 27,000 companies 500 have > 500 employees Employs 1.5 million people Sales of € 440 billion in 2004 € 40 billion trade surplus in 2004

4 Introducing Cefic  Founded in 1972  The forum and the voice of the chemical industry in Europe, ‘from bulk to specialties’.  Brussels based office of 150 people working with over people across the chemical industry European Chemical Industry Council

5 Cefic Membership There are three groups of Cefic members: 1. National Federations from across Europe (22) 2. Major international companies (40) 3. Business member companies (500)

Cefic vision & mission Chemistry making a world of difference Vision To maintain and develop a prosperous chemical industry in Europe by promoting the best possible economic, social and environmental conditions to bring benefit to society with a commitment to the continuous improvement of all its activities including its safety, health and environmental performance Mission

Cefic based on 9 programmes Carl Van Camp - Total Luciano Respini - Dow Ulrich Koemm - Lanxess Jean-Marie Biot - Fedichem John Taylor - Borealis Pierre Brondeau – Rohm & Haas Jean-Marie Biot - Fedichem François Cornélis - TotalUtz Felcht - Degussa Mathieu Vrijsen - Dupont Giuliano Paini - Syndial Energy, HSE & Logistics Theo Walthie – Dow Europe

8 Cefic Logistics Vision Statement The chemical industry is managing its supply chains in such a way that it is at the forefront of logistics development and sustainability, offering a competitive edge in the global environment. Mission Statement The Cefic Logistics Committee identifies and prioritises key logistics challenges for the chemical industry and develops and steers an action programme to address these, taking into account legal, political and company boundaries.

9 Cefic Logistics Main Objectives To promote high safety and environmental standards To promote sustainable and competitive logistics in Europe To promote the application of industry best practices To follow up the activities of the EU and other regulatory bodies which may have an impact on the European chemical industry

10 CEFIC Logistics Committee Logistics Committee: 18 Members 15 Companies 3 Associations 7 Countries: B, CH, D, F, NL, UK, I Services and Systems CEFIC IT European Transp. Policy 5 Members IT Transport & Environment 4 Members IT Promotion & Communication 6 Members IT Best Practices 9 Members WG Cargo Securing WG Standardisation Equipment WG Tank Cleaning WG Learning from Accidents WG RailTech. Tremcards ERICards SQAS ICE Emergency Response WG Chem. Tankers WG Degassing Barges WG Transport Regulations

11 Cefic Logistics Committee Members J Prengel, ChairmanBASF F Otten, Vice-ChairmanDSM H FortmannDegussa F AndreesenBayer N MockfordExxonMobil R GiesbersDow Europe A AvauSolvay R van KlaverenLyondell J GarlickBP G LanglaisArkema J EggelsShell W BrouwerHuntsman MF BenzDupont F ClausSabic C MeregagliaMapei Ph BrowittCDI A HeidVCI C DemeestereEPCA J VerlindenCefic

12 Cefic Logistics Team J. Verlinden F. Jonckheere D. De Cock European Transport Policy Transport Regulations SQAS Best Practices Tremcards / ERICards Transport & Environment ICE Emergency Response Promotion & Communication C. Napoli C Bienvenu C. Napoli

13 Best Practice Guidelines SHE management practices for LSP’s Standardised delivery performance measurement * Standardisation of equipment* Loading/unloading windows (16 hrs operation) Safety awareness and behaviour in supply chain Behaviour Based Safety – driving Behaviour Based Safety – loading/unloading* Subcontracting of Road Transport Security in transport Supply Chain Excellence * under revision

14 Cefic Logistics Best Practices New initiatives Cargo stowage and securing (packed goods) Learning from accidents / incidents Degassing of barges Transperanto

15 Objective Programme aiming at increasing the safety during freight transport and loading/unloading by positively influencing the behaviour of people through observation, coaching and communication. Behaviour Based Safety

16 Behaviour Based Safety  Road Vehicle Driving Focus on drivers  Loading/unloading of road vehicles Focus on operators/drivers

17 Behaviour Based Safety Loading / Unloading Objective Provide assistance in the prevention and elimination of unsafe conditions during loading/unloading operations of road vehicles. Part 1: Definition of responsibilities of the different parties involved (management / operators / drivers) Part 2: How implement BBS for loading/unloading operations Observation Communication Coaching

18 1. Transport equipment 2. Site instructions 3. On-site driving and parking 4. PPE 5. Emergency preparedness 6. Documentation, marking and labelling 7. Product samples 8. Working at heights 9. Tank capacity 10. Equipment under pressure 11. Multi compartment tanks 12. Hoses and other equipment 13. Connections 14. Permission to load/unload 15. Vehicle restriction 16. Disconnection 17. Near miss / incident reporting 18. Stowage, securing and segregation of packed goods Management responsibilities of (un)loading site & carrier Operational responsibilities of site operator & driver Behaviour Based Safety Loading / Unloading

19 BBS loading/unloading Working at heights Management responsibilities of the loading/unloading site The management of the site should provide safe conditions for working at heights (including safe access to top of vehicles) in conformity with the European Directive 2001/45/EC of 27 June 2001.

21 BBS loading/unloading Communication Competence of operators Operators dealing with foreign drivers should be able to communicate in the local language and in at least one of the following languages (English, French or German). As a minimum they should be able to communicate in the terminology of Transperanto (see Competence of drivers Drivers who are involved in international transport operations, should be able to communicate in the local language of the loading/unloading site or in at least one of the following languages (English, French or German). As a minimum they should be able to communicate in the terminology of Transperanto (see ).

22 What is Transperanto ? Transperanto is a toolbox, containing key safety related words and phrases, translated in 25 European languages. The term “Transperanto” is derived from the words transport, transparency and esperanto.

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24 Pilot project - Excel sheet

25 An example of a translation

26 Cefic Logistics Best Practices For more information and copies of guidelines see:

27 What is SQAS ? A system to evaluate the quality, safety, security and the environmental performance of Logistic Service Providers and Distributors in a uniform manner by single standardised assessments carried out by independent inspectors It is NOT a certification system !!! But fact finding, no pass or fail.

28 Why do we do SQAS ?  Responsible Care applied to Logistics Operations (full Supply Chain)  Drives Continuous Improvement of Safety and Quality Standards  Cost effectiveness : single objective evaluation instead of individual company assessments

29 Central management to ensure the integrity of the SQAS system is based on 4 pillars : - Common industry questionnaire - Accreditation of assessors - Electronic Database of Assessment Reports - Service Group Control on quality of the assessors through training, accreditation scheme, and quality monitoring. Better accessibility and transparency of the assessment results through electronic database. SQAS Service Group : Provides the financial resources to ensure a sustainable operation. Pillars of SQAS

30 Status of SQAS in Europe We have in place :  operational modules for all aspects of the supply chain, with dedicated industry questionnaires  a database containing over 1500 reports of assessed transport companies / LSP’s  a network of approx 100 SQAS assessors across Europe, trained and accredited by Cefic  an SQAS Service Group of 47 chemical companies, providing the management structure and the financial support

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SQAS Coverage CDI-M (Ship inspections) CDI-T (Bulk Terminals) CDI-mpc (marine packed Cargo) Ships Shipping Line Container Freight Station Freight Forwarder Tank Container Operator Port Agency Transfer Terminal (sea) Inland waterways / Barges (EBIS) Logistics Chain : Transport Service Tank Cleaning Station Rail Carrier Packed Warehouses RTC (Rail Tank Car) Maintenance Workshop Chemical Distributor (ESAD-II) CDI (Marine / Global)Cefic (Land / Europe)

33 SQAS Transport Service Scope - Road Transport Companies (asset and non-asset based) - Intermodal Service Providers (rail, barge, ferry and short-sea) (*) - Forwarding agents (*) - Transfer Terminals (road > rail > barge) (*) (*) When not covered by CDI-mpc. Never need to assess a company twice ! Questionnaire : - CORE (identical for all logistics modules) - SPECIFIC "Transport Service" questionnaire, with modular blocks. Applicability of these blocks depends on company type, operations and infrastructure.

Final Structure SQAS Transport Service CORE 1. Management 1.1 Management Responsibility 1.2 Personnel 1.3 SHEQ&Sec Performance Analysis 1.4 Management Review 2. SHE 2.1 Risk Assessment and Risk Management 2.2 Safety - Personal Protective Equipment - Emergency Preparedness and Response 2.4 Health 2.5 Environment 3. Security 3.1 Standards and Procedures 3.2 Site security 3.3 Training

Final Structure SQAS Transport Service 8. Site Operating Procedures and Customer Interface 8.1 Operating instructions 8.2 Customer Interface 9. Process and Operations 9.1 Order Planning and Communication 9.2 Operations 9.3 Administration 9.4 Temporary storage and internal transfer of packaged goods 10. Specific types of Transport Services 10.1 Transfer Terminal for container/vehicle operations 11. Site Inspection by assessor 11.1 Building, Grounds and Fixed Equipment 11.2 Vehicles and other equipment SPECIFIC 4. Supply Chain Management and Subcontracting 4.1 Choice of logistic solutions and Supply Chain Mgt 4.2 Subcontracting Services 4.3 Performance monitoring of logistics partners - Performance criteria - Performance monitoring process 5. Equipment 5.1 Equipment Specification 5.2 Equipment Inspection, Maintenance & Calibration 5.3 Purchase and maintenance of equipment by logistics partners 6. BBS 6.1 Awareness of all service partners 6.2 BBS for Safe Driving 6.3 BBS for safe Loading / Unloading 7. Security in Transport 7.1 Security Plan 7.2 Security during Transport

SQAS Database Accredited Assessor Assessor Software Application SQAS Road Database Assessed Company User Chemical Companies Cefic Administration New ! Authorized Transport Companies

37 Improvement Programme

38 SQAS ROAD 2005 Learnings from Scoring Analysis Average score went from 85% to 75% !!! -Best sections > 90% -4.5 Temp. Storage and internal transfer of packaged goods (90%) -6.3 Vehicles (98%) -Worst sections < 75% -1.4 Management Review (74%) -2.1 Risk Assessment and Management (70%) -2.2 Safety (71%) -2.3 BBS (39%) -3.1 Equipment Specification (73%) -4.4 Sub-Contracting Road Haulage (61%) -5.1 Security (52%)

39 SQAS Cleaning Assessment Process Cleaning Station SQAS Cleaning Database LSP Chemical Company Assessor Feedback Expectations Assessor Software Application

40 SQAS Cleaning  Revised SQAS Cleaning launched in 2003  47 active assessors  307 assessments reports on database  Very good take up by cleaning stations  Limited active use of assessment reports by transport and chemical industry

41 Number of SQAS Cleaning Assessments Total Total Total Total Total 307

42 Promotion SQAS Cleaning Chemical companies should promote active use of SQAS Cleaning reports by transport companies by:  Checking ‘cleaning’ questions in SQAS Road / Transport Service assessments  Raising ‘cleaning’ issue at review meetings with LSP’s  Carrying out a survey at their LSP’s on active use of SQAS Cleaning reports  Follow-up in case of safety/quality incidents related to tank cleaning  Analysing reports of main cleaning stations used by their hauliers

43 European Cleaning Document (ECD)  Developed jointly by EFTCO/ECTA/Cefic  Uniform format & content  Language independent  Unique ECD numbering managed by national cleaning associations  ECD implemented in B, NL, F, CH, D, UK, I, E, Nordic,…  Interest in ECD in Poland, Turkey,…

44 Transport Emergency Response Road ICE European Network of National Emergency Response Schemes covering 17 countries Transport Emergency Cards (Tremcards) Emergency Response Intervention Cards ( ERICards)

45 ICE Emergency Response EUROPEAN ICE NETWORK European Network of ICE Centres National ICE Centre Product Data National Network of Chemical Companies

ICE - Transport Emergency Response Status Norwegian Coastal AdministrationRVKNorway NCEC – CulhamChemsafeUK Novartis – BaselChemiefachberatungSwitzerland Poison Centre – StockholmERCSweden * Civil Protection – MadridCERETSpain DUSLO – SalaDINSSlovak Republic PKN Orlen – PlockSPOTPoland * DCMR – RotterdamTRCNetherlands Syndial – Porto MargheraSETItaly Hung Oil & Gas Co – SzazhalombattaVERIKHungary BASF – LudwigshafenTUISGermany * CEDRE – Brest (only internationally)TransaidFrance * Emergency Centre – HelsinkiFintercFinland * Emergency Agency – CopenhagenFDKI/RVKDenmark Chemopetrol – LitvinovTRINSCzech Republic BASF – AntwerpBelintraBelgium BASF – LudwigshafenTUISAustria National Centre (* : centre located with Authorities) National Scheme Country

ICE - Transport Emergency Response Status