Logistics & Supply Chain

The Benefits of Safe Handling

The chemical supply chain and its worldwide need for tank containers

04.04.2017 -

The International Tank Container Organisation (ITCO) represents the international tank container industry to the public and to governmental bodies. Its mission is to promote and represent tank containers as safe, cost-efficient and flexible means of transport. In doing so, the organization has a strong focus on enhancing technological and business developments. Tank containers are used for a wide range of hazardous and non-hazardous cargoes, such as chemicals, petro-chemicals, food-grade commodities, gases, and powders. They are designed for safe, intermodal transport, as they can be easily moved by truck, train, and ship. In January 2017 Reginald Lee has been elected to the position of president of ITCO. CHEManager Distribution & Logistics asked him about the organization, about the tank container industries’ and users’ needs.

CHEManager Distribution & Logistics: In your opinion, what is the main task or core mission of ITCO today?

R. Lee: The core mission of ITCO is to promote the tank container as the safest, most cost effective mode for transporting bulk liquids in the worldwide liquid supply chain.

Focusing on the chemical industry: What are the principal topics ITCO deals with?

R. Lee: First of all stands safe handling of the tank containers and ensuring the people and the environment are protected at all times during loading, transporting, discharging. This implicates also that any waste product and washing water used during the cleaning of the tanks are professionally disposed of in accordance with international and local government regulations.

Where in the world we can find the hotspots of tank container use and handling?

R. Lee: The current hotspot for the tank containers is Asia and here China is not only the main producer but also the biggest user. We notice a growing rate by double digits year on year.

Multimodality is essential in transport of tank containers and the exchange of carriers. In this context, how do you rate the potential of multimodality in Europe, Asia, the Americas and finally Africa?

R. Lee: Asia Pacific I see as the biggest user of tank containers for the next decade, mainly because they have no real liquid infrastructure except drums and tanker ships. Tank containers are just a big stainless steel re-unsalable drum and can also take the place of small tanker ships. The Asian companies are happy to make changes if it works out cheaper, they are not stuck with traditional modes as other regions.

Europe is already well established and I do not see big expansion, just more of the same, substituting tank containers for road tankers and using the railways more.

In my personal view, America is not prepared to change. If America would allow tank containers on double stacker trains – as a normal – they would see big advantages. However they are too tied up with rail tank wagons and many chemical companies use these as part of their companies’ static storage, plus they do not like to change what they already have established.

Does ITCO force structural improvement in this regard? If yes how?

R. Lee: ITCO is a trade organization. We cannot force structural changes. We can advise. We can recommend and show companies the benefits.

Referring to supply chain safety and risk: What do you think about the significance of global standards?

R. Lee: There is always room for improvement. But in Europe we have a very rigid code of practice arrived at after many years of hard work by all involved in the liquid supply chain. We need to transfer its knowledge to Asia and help them to understand the benefits of safe handling will always bring in the best rewards.

Where is the main need for action?

R. Lee: Main need I see in joining ITCO and @tco into one organization for the benefit of all in the liquid supply chain. Working together to ensure we are the safest, most environmentally friendly and cost effective mode for distributing bulk liquids in support of our customers.

About ITCO

The tank container industry is on the one hand an asset driven industry with a strong focus on all technical issues of designing, manufacturing and maintaining high quality tank containers. On the other hand the industry puts a lot of efforts into minimizing the risks associated with working at tank containers. ITCO is very much involved into standard setting and guidelines that make sure that all people involved in loading, discharge, storage, cleaning, repair, shipping / rail terminal operations can work safely at tank containers.