Impact assessment of measures to prevent explosions on tankers transporting low flash point cargoes Port of Rotterdam Authority 9 februari 2012 Final Report 9X0291 CONTENTS Page 1 INTRODUCTION 1.1 Background 1.2 Objective 1.3 Contents 1 1 2 3 2 INERT GAS SYSTEMS 2.1 Introduction 2.2 Inert Gas: Nitrogen and Flue Gas 2.3 Inert Gas System Lay-out 2.3.1 Nitrogen Generation on Board 2.3.2 Nitrogen Supplied from Shore 3 3 3 4 4 5 3 SHIP IMPACT ASSESSMENT 3.1 Introduction 3.2 Service Time 3.3 Methods of applying inert gas 3.3.1 Purging+inerting 3.3.2 Blanketing 3.4 Options for Ships to Reduce Impact on service time 3.5 Quantification of Inerting Time 3.5.1 Time Required for Applying Inert Gas based on Interviews 3.5.2 Time Required for Applying Inert Gas based on Selection of Port Logs 3.6 Summary Ship Impact 10 11 4 PORT IMPACT ASSESSMENT 4.1 Introduction 4.2 Data Input and Analysis 4.3 Current Ship Movements 4.4 Growth Scenarios 4.5 Impact on Service Time for the PoR 4.6 Analysis of Specific Berths with High Impact 4.6.1 Overview Impacted Calls 8 – 20 kDWT 4.6.2 Impacted calls versus other ship sizes at most Impacted Berths 4.7 Utilisation Rate for Most Impacted Berths 4.8 Utilisation Rate for Vopak Terminals in the Botlek area 4.9 Amount of 4,000 – 8,000 DWT ships 13 13 13 14 16 18 18 18 20 21 23 23 5 ENVIRONMENTAL EFFECT IGS 5.1 Nitrogen Consumption for Purging + Inerting 5.2 Nitrogen consumption for blanketing 5.3 Environmental Impact 25 25 26 26 6 FINANCIAL IMPACT ASSESSMENT 6.1 Introduction 6.2 Port of Rotterdam 29 29 29 Impact inert Gas <20 kDWT tankers Final Report -i- 6 6 6 7 7 8 9 10 10 9X0291/R00002/410410/Nijm 8 February 2012 6.2.1 6.2.2 6.3 6.3.1 6.3.2 6.3.3 6.4 7 Costs of Increased Service Time in Terms of Lost Revenues (Port Dues) Indication of Costs for Additional Facilities (Jetties) CAPEX and OPEX Ship Lost Revenues due to Delay CAPEX and OPEX of the IGS Costs for Shore Supplied Nitrogen Terminal CONCLUSIONS 7.1 Impact on the PoR 7.2 Impact on Ships 7.2.1 Additional Service Time 7.2.2 Lost Revenues for Ship Operators or extra Costs for Charterers 7.2.3 OPEX of IGS 7.3 Terminals 7.4 Summary of Financial Impact Annex 1 Annex 2 Annex 3 33 33 34 34 34 35 35 35 Ship and cargo types Inert Gas systems Data collection Impact inert Gas <20 kDWT tankers Final Report 29 30 30 31 31 32 32 - ii - 9X0291/R00002/410410/Nijm 8 February 2012 1 INTRODUCTION 1.1 Background The Marine Safety Committee of IMO, and in particular, the sub-committee on Fire Protection received several propositions1 to amend the SOLAS2 regulations regarding the additional safety measures for newly built oil and chemical tankers under 20,000 DWT carrying low flashpoint cargoes (flashpoint of <60ºC). The propositions concern the installation and application of inert gas systems, nitrogen bottles or shore-supplied inert gas where appropriate. The lower size limit was discussed; lower size limits between 4,000 and 8,000 tonnes deadweight were proposed. The lower size limit for the application of inert gas is currently set at 8,000 DWT. Currently these ships are exempted from having to operate with an Inert Gas System (IGS). However, numerous fire and explosion events suspected of originating in the ship’s hold were reason for concern. Reference is made to documents FP 51/10/1 and FP 52/INF.2, in which the fire and explosion casualties are listed that occurred in cargo tanks on tankers of 4,000 DWT and upwards. The Sub-Committee on Fire Protection agreed that the fitting of appropriate IGS to new oil tankers of less than 20,000 tons deadweight and new chemical tankers carrying lowflash point cargoes would minimize the risk of fires and explosions. It was also agreed that the benefits of such fitting should outweigh any negative effects of the introduction of IGS, such as: increased fuel consumption; increased CO2 emissions; increased building costs; increased complexity of procedures; increased risk associated with tank entries. Reference is made to two other documents that were submitted to IMO: 1. Japan prepared a Formal safety Assessment and a cost benefit assessment on application of requirement of IGSs to tankers; 2. China provided comments and recommendations for the installation of IGSs on new oil and chemical tankers of less than 20,000 DWT, in which the lower deadweight limit should be 8,000 DWT, as the FSA study from Japan (FP 51/10/1 and FP 52/INF.2) indicated that installation of IGSs on oil tankers of less than 8,000 DWT would not be cost-effective. 3. Norway and Oil Companies International Marine Forum (OCIMF) proposed that the additional requirements should apply to all tankers of 500 gross tons and above. Furthermore Norway and OCIMF mentioned that no explosions are known to have occurred during the loading phase of the carriage of lowflashpoint cargoes, and therefore proposed that Inert gas on chemical tankers 1 Norway and OCIMF (FP 54/6/2) proposed amendments to SOLAS regulation II-2/4.5.5 to require the inerting of tanks on new tankers carrying low-flashpoint cargoes, which would apply to all tankers of 500 gross tonnage and above, regardless of the size of the ship or the size of the tanks 2 SOLAS regulation II-2/4.5.5 (SOLAS = Safety Of Life At Sea) Impact inert Gas <20 kDWT tankers Final Report 9X0291/R00002/410410/Nijm -1- 8 February 2012 (regardless of size) can, under certain conditions, be applied after the low-flash point cargoes have been loaded. The documents that were submitted mainly evaluated the safety aspects and the impact on ship operations. An impact assessment was initiated by the Port of Rotterdam Authority (PoRA) of the additional IGS requirements on ships operating in ports and the impact on port facilities and port logistics in the Port of |Rotterdam (PoR), since these impacts have not been assessed in the earlier mentioned assessments. The underlying report elaborates on the above mentioned impact assessment. The impact assessment was supported by interviewing representatives of the PoRA, terminals, ship operators and a major oil company. The interviewed companies are listed in Annex 3. The International Chamber of Shipping and the International Parcel Tankers Association have suggested implementing the new IGS requirements for new built ships from 2015 onwards. After evaluation of the practicality of the new IGS requirements it is expected that these new regulations will also be applied to existing ships. It should be noted that these amendments need to be agreed by the Maritime Safety Committee in May 2012. 1.2 Objective The objective of this study is to analyze the impact on the Port of Rotterdam of the suggested additional regulations regarding the application of Inert Gas Systems for newly built tankers between 8,000 and 20,000 DWT carrying low flashpoint Marpol Annex II cargoes (flashpoint <60 ºC ) on: Operation of ships in ports; Logistics in ports; The environment; Financial Impact. Remarks: The new inert gas requirements will impact chemicals and clean petroleum products3 with a flashpoint below 60ºC that are included in Marpol annex II; Other black oil products as listed in Marpol annex I (such as for instance crude oil, fuel oil or reformate) are exempted from this impact analysis since inert gas systems are mandatory for these products already; A target group of ships is defined as the group that is expected to show the most impact. This target group is defined as chemical tankers ranging 8,000 – 20,000 DWT carrying low flashpoint (<60ºC) Marpol annex II cargo; In paragraph 4.9, an outline is given of the additional amount of ships that will be impacted if the lower size limit would be set at 4,000 DWT; As the earliest date for the entry into force of the regulations would be January 2015, and the expected duration for implementation for all ships is 5 years, the impact will be assessed for 2020 using growth scenarios as outlined in the vision of PoRA towards 2030. 3 commonly referred to as chemicals and mineral oil products by Port of Rotterdam Impact inert Gas <20 kDWT tankers Final Report 9X0291/R00002/410410/Nijm -2- 8 February 2012 1.3 Contents Chapter 2 describes the different types of inert gas and the configurations used to inert tankers. In Chapter 3 the impact on ships operating in port is assessment is described. Firstly, the different methods to apply inert gas as safety measure in tankers are described and secondly the quantification of the impact on ships operating in ports is presented in Paragraph 3.5. In Chapter 4, the data input and the impact on the sea-going ships operating in the PoR is presented. In Paragraph 4.4, the situation of 2011 is converted to the expected situation in 2020, based on the growth scenarios as defined by PoRA for the Port Vision towards 20304. Paragraph 4.5 presents the impact on the most impacted berths, expressed as an indication of the increase in utilization rate for sea-going ships. In Chapter 5 the environmental effects for the additional inert gas requirements for seagoing ships are presented. Chapter 6 indicates the financial impact of the additional inert gas requirements and in Chapter 7 the conclusions are presented. 2 INERT GAS SYSTEMS 2.1 Introduction In order to obtain insight into inert gas systems, this Chapter shortly addresses the method of application and system lay-out of inert gas. For a thorough analysis, reference is made to Annex 2. 2.2 Inert Gas: Nitrogen and Flue Gas In the context of tanker operations an inert gas system is used for the purpose of fire and explosion prevention5. Inert (non-reactive) gas is used to fill the vapour space of the cargo tanks to reduce the oxygen content to a level6 where the atmosphere will no longer support the combustion of flammable vapour7. In the context of tanker operations, an inert atmosphere is created using either Nitrogen (N2) or oil fired inert gas generators (Flue Gas). Oil fired inert gas generators (either boilers or burners) are mainly applied on oil product tankers, where the inert gas is flue gas (mainly CO2 and combustion products). As flue gas imposes the risk of contaminating cargo it is exclusively used for inerting low flashpoint petroleum products such as crude oil. Burners generate cleaner inert gas than boilers and are sometimes applied for mineral oil products. For chemicals nitrogen is the 4 www.havenvisie2030.nl/files/downloads/pdf/C073_Ramingen_Goederenstromen_HV_2030_LR.pdf 5 Other purposes include prevention of chemical reactions or maintaining cargo quality 6 For nitrogen based systems rules refer to a lower limit of 5% remaining oxygen, while for flue gas based systems a limit of 8% oxygen is mentioned. 7 www.scribd.com/doc/24570288/Tanker-Safety-Guide-Chemicals Impact inert Gas <20 kDWT tankers Final Report 9X0291/R00002/410410/Nijm -3- 8 February 2012 commonly applied inert gas since it is relatively simple to separate from ambient air by separation techniques and does not contaminate the cargo. The working principle of inerting is outlined in Annex 2 of this report. In short the current situation regarding the inerting of tanks shows the following: Crude oil and petroleum products are mostly inerted with flue gas due to current SOLAS regulation or due to oil companies corporate HSE policy; Since ships transporting crude oil are already inerted, crude oil is excluded from this study. The study will hence focus on white oil products and chemicals (substances subject to Marpol annex II). These cargoes will mostly be inerted with nitrogen due to the risk of contamination when using flue gas as inert gas; Some chemical products are currently inerted with nitrogen for quality requirements or (only rarely) due to corporate HSE policy; Due to an exemption in the IBC code8 for <3,000 m3 tanks in parcel tankers chemicals are only very rarely inerted for safety reasons. It is expected by the PoRA that this exemption in the IBC code will also be removed so that these tankers are assumed to be subject to the new inert gas requirements from 2015 onwards. 2.3 Inert Gas System Lay-out Two lay-outs for supplying nitrogen can be distinguished: 1. On board generation or storage of inert gas: Nitrogen separation9 from ambient air Compressed nitrogen stored on board Liquid or gaseous nitrogen stored on board in tanks or bottles 2. Shore supply of nitrogen Gaseous nitrogen supplied form shore Since compressed or liquid nitrogen stored on board is not widely used these will not be elaborated on in this assessment. 2.3.1 Nitrogen Generation on Board Nitrogen is generated on-board of ships by separating oxygen from ambient air, which consists of roughly 78% nitrogen (N2) and 21% oxygen (O2). Two ways of nitrogen generation are available: 1. Adsorption: Pressure Swing Adsorption using activated carbon to adsorb oxygen; 2. Membrane separation using a membrane through which oxygen passes much faster than nitrogen. Membrane separation is the fastest, most compact solution and therefore most commonly applied technique on-board of ships. 8 IBC code = The International Code for the Construction and Equipment of Ships Carrying Dangerous Chemicals in Bulk and provides detailed standards for the construction and equipment of chemical tankers. The bulk carriage of any liquid product other than those defined as oil (subject to MARPOL Annex I) is prohibited unless the product has been evaluated and categorized for inclusion in Chapter 17 or 18 of the IBC Code. 9 Common applied separation techniques are membrane filtration or pressure swing adsorption Impact inert Gas <20 kDWT tankers Final Report 9X0291/R00002/410410/Nijm -4- 8 February 2012 Good engineering practice shows that nitrogen separation capacity should be designed at 125% of the maximum pump capacity of the ships pumps.10 To operate nitrogen separation units a significant amount of diesel generated electrical power is required and this may not affect the availability of power for the cargo pumps. Especially on the smaller sized ships, i.e. 8,000 – 12,000 DWT, it is expected that the available diesel generated power is not sufficient for reaching the 125% flow rate. If sufficient diesel generated electrical power is not available for simultaneous operation of the nitrogen generator and the cargo pumps either the maximum pump capacity will decrease or the diesel generation capacity must be increased. However, available space on board of ships can be limited. Space can sometimes be available in the forepeak of ships but this is uncommon, and on occasion even rejected by regulation. 2.3.2 Nitrogen Supplied from Shore Some large terminals in the PoR are connected to a nitrogen distribution pipeline that is serviced by an industrial scale nitrogen producer. The nitrogen capacity of the distribution pipeline is much higher (up to 4,000 m3/hour) than the nitrogen capacity at the jetties (varying between 450 and 800 m3/hour). This is caused by the relatively small pipe diameter at the jetty (typically 2 inch) in combination with the nitrogen pressure that is reduced form 6 down to 2 bar. Nitrogen pressure needs to be reduced when inerting ships to avoid damage to the ships. Other terminals receive liquid nitrogen supplied in batch by tank trucks. This liquid nitrogen is evapourated with a capacity of around 1,000 to 1,500 m3/hour but here also the nitrogen capacities at the jetties are limited due to the small diameter pipes on the jetties in combination with the reduced nitrogen pressure. In interviews with terminal operators, the nitrogen capacity of a few terminals were discussed. Four terminals with nitrogen facilities are listed below in Table 2-1. Table 2-1: Inert gas system capacity at terminal jetties Terminal cap N2 (m3/h) Vopak Terminal Chemiehaven 450 650 @7 bar Vopak Terminal TTR 300 @3 bar Vopak Vlaardingen 500 Odfjell 800 10 Based on input from Inert Gas Installation Supplier. Impact inert Gas <20 kDWT tankers Final Report 9X0291/R00002/410410/Nijm -5- 8 February 2012 3 SHIP IMPACT ASSESSMENT 3.1 Introduction In this Chapter the impact of the application of inert gas on ships is assessed. The impact on a ship is twofold: 1. Increase in service time; 2. Increase in capital and operational expenses (CAPEX and OPEX); This Chapter will outline the impact on service time concluding with a quantification of service time and delay caused by inerting activities. For the impact of the capital and operational expenses of both board and shore supplied inert gas reference is made to Chapter Error! Reference source not found.. 3.2 Service Time The turn-around time is defined as the time needed for loading, unloading, and servicing a ship. But since it is sometimes defined as the time from entering a port (end of sea passage) until leaving a port (start of sea passage) and since the time required for a ship navigating through the PoR is not impacted by the new IGS requirements,only the impact on service time is evaluated in this study. The service time is defined as the time from berthing until departing a terminal jetty. Figure 3-1 shows all possible steps in which inert gas systems are used as extra activity (dots) in relation to discharge and loading of cargo (squares). Figure 3-1: Schematic overview of the possible steps of discharge and loading and the use of inert gas Purging is related to discharging, whilst inerting11 and blanketing is related to loading. Depending on the situation, a ship will choose the appropriate method. Cleaning and gas freeing of low flashpoint cargoes should be done under inert conditions to prevent the risk of obtaining an explosive mixture. In practice purging can be performed simultaneously with loading and cleaning. 11 Supplying inert gas to an empty tank after inspection is called inerting to indicate the difference with purging a tank filled with cargo vapour after discharge. In day-to-day operation both activities are often called “purging”. Impact inert Gas <20 kDWT tankers Final Report 9X0291/R00002/410410/Nijm -6- 8 February 2012 3.3 Methods of applying inert gas Two methods of application of inert gas can be identified: 1. Purging+inerting: Purging is the dilution or displacement of cargo vapour in the tanks after discharge to a level at which combustion cannot take place. Inerting is performed before loading to decrease the level of oxygen to a level at which combustion cannot take place by refreshing the tank vapour space with inert gas. 2. Blanketing: As an alternative to the procedure of inerting before loading, blanketing can be applied after loading. Tank blanketing is the process of applying inert gas to the tank vapour space above the loaded product in the cargo tanks. For a clarification of the terms used in this paragraph, reference is made to Annex 2. One of the safest ways to prevent explosions or fires is to follow the steps of discharge, purging, gas freeing, inspection and inerting before loading a new product. If legislation or customers require all operations involving flammable cargoes or cargo vapours to be carried out under inert conditions then ships will have to apply purging + inerting. Only applying blanketing after loading is a compromise to avoid the time consuming steps of purging and inerting, since it is less safe but much faster. In the following three paragraphs both methods of using inert gas are outlined. 3.3.1 Purging+inerting Figure 3-2: Purging Purging is carried out during or after discharge and cleaning of the tanks and before gas freeing. Figure 3-2 includes discharge itself and simultaneously supplying inert gas to the cargo tanks to prevent the ingress of ambient air. After discharge the cleaning of the tank can begin and if purging is not performed simultaneously the after cleaning purging can be started to reduce cargo vapour concentration. Subsequent to cleaning and purging, gas freeing is carried out with ambient air to make the tank accessible for a tank inspection. Impact inert Gas <20 kDWT tankers Final Report 9X0291/R00002/410410/Nijm -7- 8 February 2012 In relation to service time there are two variations for purging : If the ship requires shore supplied nitrogen, purging will have to take place at the berth, i.e. within service time (red dot); If the ship has board supplied nitrogen at its disposal, it may consider to save service time and clean and purge outside service time (e.g. while sailing, at the anchorage position outside the port or at a lay by jetty, see the hashed red dot). Figure 3-3: Inerting Inerting is done after inspection of clean and ambient air filled tanks and before loading cargo. Figure 3-3 includes the survey of the tanks, inerting of the tanks and loading. In relation to service time there are two variations for inerting: If the ship requires shore supplied nitrogen, purging will take place at the berth, within service time (green dot). If the ship has board supplied nitrogen and permission from their client (mostly the product owner) for remote survey12, it may consider to save service time by remote survey before berthing at the loading jetty and inert its tanks while sailing towards the loading jetty (hashed green dot). In many cases the product owner or the terminal demands for a survey at the terminal jetty due to the liability for contamination of loaded products with remainders of previous cargo when tanks are not properly cleaned. 3.3.2 Blanketing Figure 3-4: Blanketing 12 surveying while sailing or while berthed at another jetty prior to berthing at the loading jetty Impact inert Gas <20 kDWT tankers Final Report 9X0291/R00002/410410/Nijm -8- 8 February 2012 Blanketing is done after loading. In case of blanketing, the inerting system is used to fill the vapour space in the cargo tanks on top of the cargo in the tanks. In relation to service time there are two variations to this scenario: If the ship requires shore supplied nitrogen, blanketing will take place at the berth, within service time (coloured dot); If the ship has board supplied nitrogen it may consider to save service time and add the blanket to the tanks while sailing (hashed dot). Blanketing is expected to be allowed, as stated in draft amendments to SOLAS regulations, ad 10: In consideration of concerns expressed about the potential for increased congestion at loadports, the Sub-Committee further agreed that chemical tankers should be allowed to apply inert gas on completion of loading but before commencement of discharge; 3.4 Options for Ships to Reduce Impact on service time Options for ships to reduce impact can be separated into two categories: A) Planning of activities outside service time and B) Optimization of activities inside service time. A) Planning of inert gas activities outside service time (off berth) There are occasions in which the inerting activities can be performed outside service time, saving up to a 100% of time needed for the inert gas activity. The conditions for these situations to occur are: 1. Cleaning, purging and gas freeing can be done outside service time when the ship is equipped with an inert gas installation and blowers for gas freeing. If not, the ship is depending on shore supplied inert gas and must stay berthed at the jetty. 2. Remote Survey and inerting can be done outside service time if: a. the ship is equipped with an inert gas installation and b. the terminal or cargo owner has given permission13 for remote survey. 3. Blanketing can be done outside service time when the ship is equipped with an inert gas installation. If not, the ship is depending on shore supplied inert gas. This shows that blanketing outside service time only requires board supplied nitrogen, while inerting requires remote survey and board supplied nitrogen. Therefore, blanketing is expected to offer more opportunities to reduce the impact on service time. B) Optimization of inert gas activities within service time (at berth) The port logs show that even though inerting activities are performed within service time, the actual delay can in some cases be mitigated or reduced to even zero. This is due to the diversity of cargoes that are loaded at the same berth in different tanks. For example: if one of two products to be loaded needs a blanket, and if loading of the two products cannot be done simultaneously, blanketing time can be minimized by starting loading of the product that requires blanketing first and subsequently blanketing together 13 In many cases the terminal or product owner will demand for surveying at the terminal jetty due to the liability for contamination of loaded products with remainders of previous cargo when tanks are not properly cleaned. Impact inert Gas <20 kDWT tankers Final Report 9X0291/R00002/410410/Nijm -9- 8 February 2012 with loading the second product. While the first tank receives its blanket, the other tank is still loading. 3.5 Quantification of Inerting Time 3.5.1 Time Required for Applying Inert Gas based on Interviews Based on interviews with operators of ships in the range of 8,000 – 10,000 DWT an estimation of the delay was made. This estimate is based on their current experience with shore supplied inert gas, since on-board generation of nitrogen is not common practice for their ships. In Table 3-1, typical durations are presented including the extra time for inert gas requirements. Table 3-1: Example for discharging and loading cycle for a 10.000 DWT tanker Activity duration (h) extra time IG (h) Discharge + stripping 16 -- Cleaning tanks 4 -- Purging -- 8 Gas freeing 12 -- Survey 2 -- Inerting -- 8 Loading 16 -- Turnaround 50 16 The prediction in the Table 3-1 can be regarded as a worst case scenario since this is a non-optimized scenario where shore supplied nitrogen is applied. The worst case impact is therefore a delay of 16 hours on a service time of 50 hours (this equals 32% additional service time). It is expected that this worst case scenario will not be economically feasible for ship operators and/or terminals and that therefore optimizations will be initialized. 3.5.2 Time Required for Applying Inert Gas based on Selection of Port Logs Six port logs received from an operator of approximately 40,000 DWT parcel tankers, loading in the PoR, are analysed. It should be noted that these ships all operate onboard generation of nitrogen with a capacity of roughly 1,000 m3/hour. The average time needed for inerting and blanketing was derived from these port logs and is presented in Table 3-2 and Table 3-3. Table 3-2: Inerting Time for 40,000 DWT ship Inerting time per call unit average [h:mm/call] 4:49 unit average [h:mm /call] 2:20 Table 3-3: Blanketing Time for 40,000 DWT ship Blanketing time per call Impact inert Gas <20 kDWT tankers Final Report 9X0291/R00002/410410/Nijm - 10 - 8 February 2012 Table 3-4: Service Time for 40,000 DWT ship unit Average optimized scenario Service Time Extra ST because of Inert Gas Activity [hh:mm /call] 46:19 [h:mm/call] 3:27 Remarks: Purging is not included in this data but since the interviews point out that purging generally is the same exercise as inerting, we assume the purging time to be equal to the inerting time. The average inerting and blanketing time shows the time per cargo transfer, i.e. not per tank transfer. The data show that blanketing time is much shorter than inerting time; blanketing is about 60% of the inerting time. Because of logistics, the difference between the actual impact of the two systems of inerting and blanketing may be even bigger, as will be explained in the next Chapter. 3.6 Summary Ship Impact The information derived from the interviews and gathered data leads to the additional service time due to inert gas requirements as presented in Table 3-5. Table 3-5: Service time Service Time Port logs Interviews Average Case (optimized ship) Worst Case scenario scenario Total Service Time [hh:mm] 46:19 50:00 Extra ST because of Inert Gas Activity [hh:mm] 3:27 16:00 Table 3-5 shows an average service time based on the port logs of 46:19 hours, of which 3:27 hours accounts for extra service time due to inert gas activities for large ships that feature optimized operations like remote survey and high capacity on-board nitrogen separation units. Since behaviour of large and small ships is mostly similar in terms of cargo transfer and number of tanks involved per call (see also Paragraph 3.5; i.e. the main difference being that large ships visit more terminals), the identified additional service time of 2:27 hour for >20,000 DWT is expected to be a representative range of impact for ships in the 8,000 – 20,000 DWT range when they are fully equipped with on-board inert gas generators. Impact inert Gas <20 kDWT tankers Final Report 9X0291/R00002/410410/Nijm - 11 - 8 February 2012 For ships in the lower part of the 8,000 – 20,000 DWT range, ship operators expect a much higher duration for purging and inerting, which is reasonable since these smaller sized ships are not as well equipped as the larger sized ships. Moreover, the smaller sized ships have fewer optimization possibilities due to the lower amount of tanks per ship. These operators expect a purging and inerting time of 16 hours per discharge and load cycle. This does match with the maximum duration that was measured in the port logs for the larger ships (total of 7,175 ton was loaded into 6 tanks). This scenario will therefore be used as a worst case scenario (8 hours for purging plus 8 hours for inerting). Impact inert Gas <20 kDWT tankers Final Report 9X0291/R00002/410410/Nijm - 12 - 8 February 2012 4 PORT IMPACT ASSESSMENT 4.1 Introduction In this Chapter the impact on the PoR is presented, converting the impact on ships as given in Chapter 3 to the impact on the entire port area. 4.2 Data Input and Analysis The PoRA provided detailed information on port calls for Marpol annex II products, ship sizes, cargo transfer volumes and berth location. A spread sheet was provided by PoRA that was derived from the Informatie Verwerkend Systeem (IVS), containing 4,153 administrative calls in the period January 1, 2011 until January 04, 2012. Total cargo transfer amounts to 13.8 Mton14 of Marpol Annex II liquid bulk transfers that are classified as flammable15 in the Port of Rotterdam, Vlaardingen, Schiedam, Dordrecht and Moerdijk16. From these calls a selection was made for ship sizes between 8,000 and 20,000 DWT. This selection reduces the number of calls to 882 Impacted Calls (that will be subject to the new IGS requirements). The total amount of cargo that was transferred within these 882 Impacted Calls is 3.9 Mton of low flash cargo. Table 4-1: Overview calls and cargo Annex II Marpol Annex II Low flash annex II cargo in 8-20k DWT ships Cargo Transfer (tons) 13.8 Mton 3.9 Mton The total amount of sea-going ship calls in the PoR are also registered IVS. IVS provided also information about the duration of sea-going ships at a berth, which is used to indicatively determine the berth occupancy. The data contained the total amount of sea-going ship calls in the Ports of Rotterdam, Vlaardingen, Schiedam, Dordrecht and Moerdijk for all cargoes (so including dry bulk, containers and other piece-goods, which are not relevant for this impact assessment). The total amount of calls within the used data set was 22,523 at 327 different berths in the period January 6th 2011 – November 28th 2011. A selection was made to delete unlogical calls that stated negative berth time and a berth time of less than 120 minutes, resulting in 19,078 calls at 327 different berths. Within these calls both loading and unloading transactions were registered and therefore a selection was made in loading or unloading activities, resulting in: 1. 12,779 loading transactions; 16,245 discharging transactions. 14 Mton = million tonnes 15 IMDG code 3 16 Both Dordrecht (0.4% of relevant calls) and Moerdijk (5,4% of relevant calls) ports report to the IVS database but the vast majority of port calls are located in the Rotterdam area (94%). Impact inert Gas <20 kDWT tankers Final Report 9X0291/R00002/410410/Nijm - 13 - 8 February 2012 4.3 Current Ship Movements To determine the impact on logistics in the Port of Rotterdam the current traffic (2011) is analysed. The figures below provide insight in the distribution of ship size and transferred cargo of Annex II cargo. Figure 4-1 shows the distribution of ship sizes transferring Marpol Annex II cargo over 2011. The upper chart shows the distribution for all analysed calls; the middle shows all ship sizes carrying flammable cargo and the lower chart shows the distribution within the target group by size of 8,000 - 20,000 DWT. Figure 4-1: Distribution of ship size (Annex II cargo) Within the target group both extremes (ships just above 8,000 DWT and ships just below 20,000 DWT) visit the Port very frequently. Figure 4-2 shows the transferred cargo per call per ship size. Impact inert Gas <20 kDWT tankers Final Report 9X0291/R00002/410410/Nijm - 14 - 8 February 2012 Figure 4-2: Transferred cargo per call per ship size (red dots indicate the target group) As shown in the upper graph of figure 4.3, the transferred cargo per call shows to be relatively independent of ship size (dots in the lower part of the graph). Also, the figure shows that most calls are done by relatively small ships (high concentration of dots in the lower left corner) and that there is a large amount of ships just below 20,000 DWT. Figure 4-3 shows the total amount of calls in relation to ship size and transferred cargo. Impact inert Gas <20 kDWT tankers Final Report 9X0291/R00002/410410/Nijm - 15 - 8 February 2012 Figure 4-3: Distribution of transferred cargo and ship size Figure 4-3 shows that some ship types visit the PoR more frequent than others, however, most transferred cargo is in the same tonnage range. The figures indicate the traffic behaviour in the PoR. In terms of calls, ships are mostly relatively small. Transferred cargo per call is in most cases independent of ship size. This indicates the behaviour of larger parcel tankers to handle more relatively small cargo transfers (related to their capacity) equally to smaller ships, rather than to handle fewer large cargo transfers. 4.4 Growth Scenarios The most influential factors in forecasting freight flows are economic growth, the volume of world trade, oil prices and environmental policy. Based on these factors, four different economic scenarios have been selected to assess future developments in freight handling in the PoR. These scenarios have been drawn up by the Netherlands Bureau for Economic Policy Analysis (CPB) and the European Commission. They are: Low Growth (LG): Low economic growth and low oil prices, fossil fuels remain dominant and environmental policy is cautious. European Trend (ET): Existing policy and a moderate growth of the economy. Impact inert Gas <20 kDWT tankers Final Report 9X0291/R00002/410410/Nijm - 16 - 8 February 2012 Global Economy (GE): Further globalisation combined with low oil prices leading to high economic growth and cautious environmental policies. High Oil Price (HOP): high oil prices, a strict environmental policy, moderate economic growth and a relatively rapid increase in sustainability of industries and logistics. These growth scenarios are used to develop growth scenarios for transfer of chemicals by the PoRA in their vision towards 2030 (Port of Rotterdam, 2010)17 and are presented in Figure 4-4. Figure 4-4: Growth scenarios for chemical cargo in the PoR (Port Vision 2030) For this study two scenarios are used to identify the range of minimum and maximum growth: 1. Low Growth (LG 2020) scenario represents the minimum increase in transfer of chemical cargo; 2. Global Economy (GE 2020) represents the highest increase in chemical cargo transfer. Table 4-2: Growth scenario chemicals PoR 2008 18 LG 2020 GE 2020 Chemical cargo transfer [Mton] 26 28 35 Increase -- 8% 35% The figures show an increase in chemical product transfer of 8% for the LG scenario and an increase of 35% for the GE scenario. The growth scenarios use 2008 as reference year while this study is based on data from 2011 as reference year. Since the growth percentages are indicative and the total transfer of chemical cargo in 2011 was 28 Mton the growth percentages from 2008 towards 2020 are used to predict the situation in 2020 for this study. The fact that the 2011 transfer volume of chemical cargo has already reached the LG expectation for 2011 confirms that this is really a minimum approach. 17 www.havenvisie2030.nl/files/downloads/pdf/C073_Ramingen_Goederenstromen_HV_2030_LR.pdf Impact inert Gas <20 kDWT tankers Final Report 9X0291/R00002/410410/Nijm - 17 - 8 February 2012 Since the fleet mix is not expected to change significantly, growth will be realized by an increasing number of ships. Also the impact on service time per ship is assumed not to change significantly towards 2020, so the growth scenarios will only affect the amount of ships. 4.5 Impact on Service Time for the PoR As discussed in Paragraph 3.4 the impact on service time due to the new IGS requirements is expected to range from 3:19 hours per call for a ship that has optimized both logistics (remote survey) and technology (on-board IG generation capacity) up to 16 hours per call for a ship that has not mitigated the effects of the new requirements (i.e. survey during service time and depending on shore supplied nitrogen). Since no data is available on the exact activities during each call it is assumed that all 459 impacted calls will be affected by the new IGS requirements. In Table 4-3, this impact range is used to predict the additional service time of the total amount of impacted calls in the PoR for the LG 2020 and GE 2020 growth scenarios combined with the average case (AC) and worst case (WC) impact: Table 4-3: Impact on the PoR for the average (AC) and worst case (WC) impact on service time Unit 2011 LG 2020 GE 2020 impacted calls [#] 882 953 1,191 AVG impact [min/berth] 199 199 199 Total impact PoR_AC* [hour] 2,925 3,159 3,949 WC impact [min/berth] Total impact PoR_WC* [hour] 960 960 960 14,112 15,241 19,051 * Total delay PoR_AC = total delay in the PoR using the average impact of 3,5 hours ** Total delay PoR_WC = total delay in the PoR using the average impact of 16 hours It has to be noted that the impact on service time can be assumed to be linear, while at high berth occupancy the effect of increasing service time on waiting time is not linear but progressive. The effect on waiting time was not studied in this report. 4.6 Analysis of Specific Berths with High Impact 4.6.1 Overview Impacted Calls 8 – 20 kDWT The total amount of impacted Unique Berth Calls in the PoR was 822. In Table 4-4 the most impacted berth locations are presented. Analysis of Table 4-4 results in the following: 1. The total amount of impacted berths is 89 but the majority of highly impacted calls is located in the Botlek area of the PoR (PET 3, TORTH, CHEMH, WER19); 2. 321 calls out of 822 impacted calls are located in the 3rd petroleum harbour (‘PET 3’) 19 rd Abbreviations of berth locations are first port name (e.g. PET3 = “3 petroleumhaven” or TORTH= “Torontohaven”), followed by company name and berth number. Impact inert Gas <20 kDWT tankers Final Report 9X0291/R00002/410410/Nijm - 18 - 8 February 2012 3. The high concentration of impacted calls in PET 3 may cause additional waiting time; 4. Three other locations show a high impact (in the top 10): Caldic, located at the Caland canal, Shell in the 2nd petroleumhaven and Shell Moerdijk; Table 4-4: Top 26 impacted berth locations based on 2011 data Low flash annex II cargo in Impacted 8-20kDWT ships Berth name calls [tons] PET 3 ESSO 2 62 384977 TORTH VOPAK TTR 1 52 211669 PET 3 VOPAK 2 41 311213 PET 3 ODFJELL 9 39 160085 TORTH VOPAK TTR 4 36 210017 PET 3 VOPAK 35 133241 MOERD HDIEP SHELL 5 28 154392 CHEMH VOPAK 1 27 151487 CALNK CALDIC STG MID 26 172259 PET 2 SHELL 35 24 34925 PET 3 VOPAK 6 24 159052 PET 3 VOPAK 4 23 73711 PET 3 VOPAK 1 20 77718 CHEMH RUBIS ST ZUID 20 95617 PET 3 B 61 19 68214 PET 3 VOPAK 3 19 111353 PET 3 ESSO 1 18 96784 PET 1 SHELL 18 16 13669 PET 3 LBC STG 16 34463 PET 3 VOPAK 5 16 59936 WER 2 STR 75 15 56726 CHEMH RUBIS ST NOORD 14 42569 WER 2 STR 73 13 52236 PET 1 SHELL 17 12 17175 PET 3 ODFJELL 10 11 68592 PET 3 ODFJELL 7 11 73675 TORTH VOPAK 11 31928 EUROH LYONDELL PL 1 11 26365 PET 1 SHELL 3 10 98365 MOERD HDIEP SHELL 10 54342 PET 3 ODFJELL 10 51693 CALNK CALDIC STG WZ 10 47014 MOERD HDIEP SHELL 4 10 60686 DORDR JULHV STANDIC3 10 13922 EUROH LYONDELL 9 31541 WER 2 STR 8 30190 Impact inert Gas <20 kDWT tankers Final Report 9X0291/R00002/410410/Nijm - 19 - 8 February 2012 4.6.2 Impacted calls versus other ship sizes at most Impacted Berths In order to relate the impacted calls to other ship sizes the impacted calls are presented versus the other Marpol annex II cargo transfers at specific berths. In Table 4-5 the total berth calls are presented. Table 4-5: Current and impacted berth occupancy BERTHNAME Impacted calls 8-20 kDWT all calls flammable annex II cargo PET 3 ESSO 2 62 136 TORTH VOPAK TTR 1 52 182 PET 3 VOPAK 2 41 131 PET 3 ODFJELL 9 39 164 TORTH VOPAK TTR 4 36 122 PET 3 VOPAK 35 124 MOERD HDIEP SHELL 5 28 74 CHEMH VOPAK 1 27 114 CALNK CALDIC STG MID 26 104 PET 2 SHELL 35 24 45 PET 3 VOPAK 6 24 72 PET 3 VOPAK 4 23 83 PET 3 VOPAK 1 20 81 CHEMH RUBIS ST ZUID 20 34 PET 3 B 61 19 30 PET 3 VOPAK 3 19 66 PET 3 ESSO 1 18 108 PET 1 SHELL 18 16 29 PET 3 LBC STG 16 62 PET 3 VOPAK 5 16 70 WER 2 STR 75 15 52 CHEMH RUBIS ST NOORD 14 45 WER 2 STR 73 13 34 PET 1 SHELL 17 12 52 PET 3 ODFJELL 10 11 65 PET 3 ODFJELL 7 11 74 TORTH VOPAK 11 29 EUROH LYONDELL PL 1 11 38 PET 1 SHELL 3 10 14 MOERD HDIEP SHELL 10 59 PET 3 ODFJELL 10 42 CALNK CALDIC STG WZ 10 42 MOERD HDIEP SHELL 4 10 53 DORDR JULHV STANDIC3 10 12 EUROH LYONDELL 9 42 WER 2 STR 8 20 Impact inert Gas <20 kDWT tankers Final Report 9X0291/R00002/410410/Nijm - 20 - 8 February 2012 4.7 Utilisation Rate for Most Impacted Berths This paragraph focuses on the impact on jetties in terms of utilisation rate for most impacted berths. In Table 4-6, the utilisation rate is presented using the average the average service time at these berths from the IVS database and the calculated increased utilisation rates are presented for the following scenarios. 2011: 2011 AC 2011 WC: LG 2020: based on LG 2020 AC: Growth” GE 2020: based on GE 2020 WC: Economy” Current utilization rates as provided by PoRA; Average case impact based on situation in 2011; Worst case impact based on situation in 2011; Utilization rate in 2020 without additional IGS requirements, growth scenario “Low Growth”; Average case impact in 2020 based on growth scenario “Low Utilization rate in 2020 without additional IGS requirements, growth scenario “Global Economy”; Worst case impact in 2020 based on growth scenario ”Global The utilisation rate will be defined for the most impacted berths. Absolute utilization (U) of berths is defined as the number of calls (C) times the service time (S), U = C*S. Average Case delay caused by inerting operations is 3.5 hour and worst case delay caused by inerting operations is 16 hours (see also paragraph 3.5). Since no data is available on the amount of 8-20kDWT ships that currently use inert gas assumed is that currently no ships use inert gas and due to the new requirements all relevant ships will be delayed by 3.5h in 2020 for the average case and 16 hours for the Worst Case. The absolute utilization in 2015 is given by Ui= (C-Ci)*S+Ci*Si, in which Ci is the number of impacted calls, and Si is the additional time due to inert gas activities. The fleet mix is assumed to remain the same so only the total number of ships will increase due to the growth scenarios. Impact inert Gas <20 kDWT tankers Final Report 9X0291/R00002/410410/Nijm - 21 - 8 February 2012 2011 2011 AC 2011 WC LG 2020 LG 2020 AC GE 2020 GE 2020 WC Average service time all calls flammable Annex II cargo Impacted calls Table 4-6: Current and impacted berth utilisation rates PET 3 ESSO 2 62 136 27 42% 45% 54% 46% 48% 57% 61% TORTH VOPAK TTR 1 52 182 24 49% 51% 59% 53% 55% 66% 69% PET 3 VOPAK 2 41 131 28 42% 44% 49% 45% 47% 57% 59% PET 3 ODFJELL 9 39 164 22 41% 42% 48% 44% 45% 55% 57% TORTH VOPAK TTR 4 36 122 24 34% 35% 41% 37% 38% 46% 48% PET 3 VOPAK * 35 124 31 44% 45% 50% 47% 49% 59% 61% MOERD HDIEP SHELL 5 * 28 74 31 26% 27% 31% 28% 29% 35% 37% CHEMH VOPAK 1 27 114 19 24% 25% 29% 26% 27% 33% 34% BERTH NAME CALNK CALDIC STG MID 26 104 25 29% 30% 34% 31% 33% 39% 41% PET 2 SHELL 35 24 45 31 16% 17% 20% 17% 18% 21% 23% PET 3 VOPAK 6 24 72 31 26% 27% 30% 28% 29% 35% 36% PET 3 VOPAK 4 23 83 30 28% 29% 32% 31% 32% 38% 39% PET 3 VOPAK 1 20 81 40 37% 38% 41% 40% 41% 50% 51% CHEMH RUBIS ST ZUID 20 34 38 15% 16% 19% 16% 17% 20% 21% PET 3 B 61 19 30 32 11% 12% 14% 12% 13% 15% 16% PET 3 VOPAK 3 19 66 40 30% 31% 33% 32% 33% 40% 41% PET 3 ESSO 1 18 108 28 35% 35% 38% 37% 38% 47% 48% PET 1 SHELL 18 * 16 29 31 10% 11% 13% 11% 12% 14% 15% PET 3 LBC STG * 16 62 31 22% 23% 25% 24% 24% 30% 30% PET 3 VOPAK 5 16 70 33 26% 27% 29% 29% 29% 36% 37% WER 2 STR 75 15 52 43 25% 26% 28% 27% 28% 34% 35% CHEMH RUBIS ST NOORD * 14 45 31 16% 16% 18% 17% 18% 21% 22% WER 2 STR 73 13 34 44 17% 18% 20% 19% 19% 23% 24% PET 1 SHELL 17 12 52 15 9% 10% 11% 10% 10% 12% 13% * For these berths the average service time from IVS was used It has to be noted that in the IVS database only sea-going vessels are registered. Furthermore only flammable Marpol annex II cargo was analysed. Hence, the current utilisation rate as presented in this chapter does not include barges and other types of cargo. During the interviews with terminal and ship operators it was stated that the most impacted berths already show very high utilisation rates (approximately 70% up to 80%) due to the servicing of barges and other chemicals at these same berths. Impact inert Gas <20 kDWT tankers Final Report 9X0291/R00002/410410/Nijm - 22 - 8 February 2012 4.8 Utilisation Rate for Vopak Terminals in the Botlek area Vopak provided the real utilisation rates including barges for their jetties. These figures are presented and used as a starting point for adding the impact due to additional IGS requirements in table 4-7 and 4-8, Utilisation rates above 70 % will lead to a progressive increase in waiting time for the ships. Impacted calls 2011 2011 AC 2011 WC LG 2020 LG 2020+AC GE 2020 GE 2020+WC LG 2020+WC GE 2020+AC Table 4-7 Utilisation rates including barges plus impact IGS Vopak Terminal Botlek PET 3 VOPAK 2 19 68% 69% 72% 73% 74% 91% 97% 78% 90% PET 3 VOPAK 3 10 71% 71% 73% 76% 77% 95% 98% 79% 94% PET 3 VOPAK 4 10 62% 63% 65% 67% 68% 84% 87% 70% 83% PET 3 VOPAK 6 9 62% 62% 64% 67% 67% 84% 87% 69% 82% PET 3 VOPAK 5 8 65% 65% 66% 70% 70% 87% 90% 72% 86% PET 3 VOPAK 1 7 75% 76% 77% 81% 82% 102% 104% 83% 100% BERTH NAME 4.9 82% 83% 84% 103% 111% GE 2020+AC LG 2020+AC 78% LG 2020+WC LG 2020 77% GE 2020+WC 2011 WC 25 GE 2020 2011 AC TORTH VOPAK TTR 4 2011 BERTHNAME Impacted calls Table 4-8 Utilisation rates including barges plus impact IGS Vopak TTR & Chemiehaven 89% 102% TORTH VOPAK TTR 1 23 77% 78% 82% 84% 85% 104% 111% 89% 103% CHEMH VOPAK 1 14 72% 73% 75% 78% 79% 98% 102% 81% 96% Amount of 4,000 – 8,000 DWT ships Should the additional IGS requirements also cover 4,000 – 8,000 DWT ships then an additional amount of 1094 calls would be impacted. These 1094 port calls versus the impacted port calls of 8,000-20,000 DWT ships are presented in table 4-9 . The grey shaded rows represent other berths that would significantly be impacted if additional IGS requirements would cover 4,000 – 8,000 DWT ships. Impact inert Gas <20 kDWT tankers Final Report 9X0291/R00002/410410/Nijm - 23 - 8 February 2012 Table 4-9 Port calls 4 – 8 kDWT versus 8-20 kDWT at most impacted berths BERTH NAME 4-8 kDWT PET 3 ESSO 2 52 8-20 kDWT 62 TORTH VOPAK TTR 1 59 52 PET 3 VOPAK 2 32 41 PET 3 ODFJELL 9 52 39 TORTH VOPAK TTR 4 48 36 PET 3 VOPAK 37 35 MOERD HDIEP SHELL 5 39 28 CHEMH VOPAK 1 41 27 CALNK CALDIC STG MID 31 26 PET 2 SHELL 35 7 24 PET 3 VOPAK 6 23 24 PET 3 VOPAK 4 36 23 PET 3 VOPAK 1 27 20 CHEMH RUBIS ST ZUID 9 20 PET 3 B 61 6 19 PET 3 VOPAK 3 29 19 PET 3 ESSO 1 55 18 PET 1 SHELL 18 5 16 PET 3 LBC STG 14 16 PET 3 VOPAK 5 21 16 WER 2 STR 75 5 15 CHEMH RUBIS ST NOORD 7 14 WER 2 STR 73 5 13 PET 1 SHELL 17 24 12 PET 3 ODFJELL 10 17 11 PET 3 ODFJELL 7 48 11 TORTH VOPAK 10 11 EUROH LYONDELL PL 1 13 11 MOERD HDIEP SHELL 35 10 PET 3 ODFJELL 20 10 CALNK CALDIC STG WZ 17 10 MOERD HDIEP SHELL 4 29 10 EUROH LYONDELL 17 9 Impact inert Gas <20 kDWT tankers Final Report 9X0291/R00002/410410/Nijm - 24 - 8 February 2012 5 ENVIRONMENTAL EFFECT IGS Additional IG requirements cause environmental effects due to: additional energy consumption for separation of nitrogen from ambient air; additional cargo vapour emission by refreshing the cargo vapour space with inert gas. The nitrogen consumption for 8,000 – 20,000 DWT ships transporting low flash cargo is mainly depending on the method that is applied: purging of complete cargo tanks prior to loading will consume a much larger amount of nitrogen compared to applying a blanket after loading. In the following paragraphs the difference between these methods is quantified. 5.1 Nitrogen Consumption for Purging + Inerting Based on interviews, as a rule of thumb, the oxygen content in a cargo tank will be reduced by 50% by refreshing the tank volume once with nitrogen with 5% oxygen content. This means that each tank that must be inerted needs to be refreshed two times: 1. After the first refreshment the oxygen content will be reduced from 21% down to 10.5% 2. After the second refreshment the oxygen content will be reduced 10.5% down to 5.25% From the interviews it was clear that it is common practice to refresh the tank volumes at least 2.5 times and mostly even 3 times at higher inert gas flow rates because this is faster than applying a lower flow rate. Inerting at higher flow rates consumes larger amounts of nitrogen but this is faster than inerting at lower flow rates (see also attachment 2 where the difference between high flow rate (dilution method) versus low flow rate (displacement method) is explained) Thus, the worst case scenario for nitrogen consumption will be set at 3 tank volumes of nitrogen for purging and three tank volumes for inerting. Thus for the worst case scenario 3,000 m3 of nitrogen will be consumed to purge a 1,000 m3 tank from 21% oxygen down to about 5.25% oxygen (which is well below the maximum of 8% oxygen). Typical nitrogen consumption for a complete cycle of discharge and loading are presented in Table 5-1, for the scenario where all operations involving flammable cargo vapours are subject to inert gas requirements and where the cargo tanks must be inspected prior to loading. Table 5-1: Typical nitrogen consumption for purging + inerting Activity explanation Discharge & stripping prevent air from entering tanks, nitrogen supplied during discharge IG volume / cargo volume 1 Cleaning tanks Relevant for non-compatible next cargo, tanks already inerted -- Purging Dilution of cargo concentration below LEL Gas freeing Replacing nitrogen with air 20 20 3 -- LEL = Lower Explosion Limit Impact inert Gas <20 kDWT tankers Final Report 9X0291/R00002/410410/Nijm - 25 - 8 February 2012 Activity explanation IG volume / cargo volume Survey Surveyor to enter the tanks -- Inerting Replace air with nitrogen 3 loading Loading next cargo (tank already inerted) -- IG volume for 1 cargo exchange (factor of tank volume) 7 The total amount of impacted low flash cargo transfers is approximately 2.4 million ton per year in the PoR. With an assumed average density of 0.8 ton/m3 this equals approximately 4,9 million m3 of impacted cargo volume and thus 34 million m3 of nitrogen consumption in 2011 if all cargo operations must be inerted. The environmental impact of this nitrogen consumption for 2011 and for the LG202 and GE2020 growth scenarios is presented in Table 5-2. ` 5.2 Nitrogen consumption for blanketing If operational guidelines will allow to only apply a nitrogen blanket after loading of low flash cargo and the cargo tanks will be kept inert during discharge then the nitrogen consumption will be approximately 1.5 times the impacted cargo volume. If a blanket is only applied after loading the nitrogen consumption will be lower since only the vapour space will have to be refreshed three times. The nitrogen consumption will depend on the vapour space in the tanks, which is depending on cargo volume related to the cargo tank size. Since this information is not available the nitrogen consumption for blanketing is estimated at 1.5 times the loaded cargo volume. The total impacted cargo volume is 4,9 million m3 of low flash cargo and thus, nitrogen consumption for blanketing will be 7.4 million m3. This can be seen as the lowest environmental impact scenario. 5.3 Environmental Impact Nitrogen consumption The most widely used technique to separate nitrogen from air on board of ships is membrane separation and therefore this technique will be evaluated. The environmental impact from on-board nitrogen separation is based on a 1,000 m3/hour membrane separation unit producing nitrogen with 5% oxygen content. For such a membrane unit a 450 kW diesel generator is required with an average power consumption of 0.2 kg of diesel/ kWh (= 90 kg diesel/hour)21. The combustion of diesel fuel results mainly in emissions of CO2, NOx, VOC and SO222. Additional vapour treatment If a blanket is applied additional cargo vapours will be emitted from the cargo tanks together with the excess of nitrogen. These cargo vapours contain VOC and must therefore be treated with a vapour combustion or vapour recovery unit. 21 22 Inertiseren en ontgassen van binnenvaartschepen (TNO R2002/150, December 2001) CO2=carbon dioxide, NOx=nitrogen oxide,VOC = Volatile organic compounds; SO2= sulfur dioxide Impact inert Gas <20 kDWT tankers Final Report 9X0291/R00002/410410/Nijm - 26 - 8 February 2012 When a vapour combustion technique is applied roughly 15 normal23 cubic meter of natural gas (or the energetic equivalent in propane) will be consumed for every 1,000 Nm3 of nitrogen/cargo vapour emission from the cargo tanks (assuming that the thermal efficiency of the vapour combustion unit is optimized). Furthermore the vapour combustion unit will emit 50 mg of VOC per m3. The environmental impact is presented in Table 5-2 based on the scenarios for either: 1. purging for 2011 and the GE 2020 scenario (worst case scenario); 2. blanketing for 2011 and the LG 2020 scenario (low impact scenario); 3. emission from additional vapour treatment. 23 3 cubic meter at standard conditions: 0 ºC and 1013 mbar (also referred to as Nm ) Impact inert Gas <20 kDWT tankers Final Report 9X0291/R00002/410410/Nijm - 27 - 8 February 2012 Table 5-2 Estimated environmental impact IGS requirements 8-20 k DWT, low flash cargo Issue Diesel consumption 2011 GE 2020 blanket purge blanket m /year 34,358,511 7,362,538 45,353,235 7,951,541.18 3 N2 consumption Membrane separation 2011 Purge unit Unit Emission factor 3 kg/m N2 kg/year 3,092,266 662,628.43 4,174,559 715,639 0.0002765 11 ton/year 9,500 2,036 12,825 2,198.60 3 0.0000015 11 ton/year 53 11 72 12 3 0.0000016 11 ton/year 53 11 72 12 3 0.0000006 11 ton/year 21 4 28 ton/m N2 NOx emission ton/m N2 SO2 emission ton/m N2 VOC emission ton/m N2 0.09 16 3 CO2 emission Additional vapour treatment Natural gas 3 3 Nm /m N2 3 0.015 16 3 5 m /year 515,378 110,438.07 695,759.85 119,273 24 ton/year 915 196 1,235 212 25 ton/year 0.7 0.1 0.9 0.2 CO2 emission kg / m NG 1.78 NOx emission kg NOx/GJ 0.04 24 Standard CO2 emission factor for natural gas (www.emissieautoriteit.nl) 25 2010 Performance Standard Rate from the Dutch Emission authority (www.emissieautoriteit.nl) Impact inert Gas <20 kDWT tankers Final Report LG 2020 9X0291/R00002/410410/Nijm - 28 - 8 February 2012 6 FINANCIAL IMPACT ASSESSMENT 6.1 Introduction In this chapter an estimate of the financial impact of the introduction of the new IGS requirements is presented. The main impacted parties are: - PoRA; - Ship operators and charterers; - Terminals. In the following paragraphs a rough order of magnitude is estimated for the additional costs or lost revenues due to the new IGS requirements for all of the above mentioned parties. 6.2 Port of Rotterdam 6.2.1 Costs of Increased Service Time in Terms of Lost Revenues (Port Dues) As presented in Paragraph 4.5, the additional service time due to inerting activities is expected to vary from 3,159 hour per year in the LG 2020 scenario with average impact up to 19,051 hour per year in the GE 2020 scenario plus the WC impact (see also paragraph 4.4 on growth scenarios). Since the utilisation rate of jetties in the PoR is high, availability of jetties can become a bottleneck for chemicals logistics, resulting in increased waiting time or even ships to call at another port. If ships decide to avoid the PoR this will cause a loss in revenues (port dues) for the PoRA. In the “General Terms and Conditions, Including Port Tariffs 2012”, the build-up of the port dues at the PoR are presented. Five steps need to be taken:26 Step 1: Determine the applicable type of ship and switch percentage. Step 2: Calculate the port dues related to the GT-size of the ship with (GT-size x GT-tariff). Step 3: Calculate the maximum port dues related to the cargo by multiplying the GT-size, the switch percentage and the cargo rate that corresponds with the ‘first type of cargo that needs to be paid’ (GT-size x switch percentage x cargo rate). Step 4: Calculate per type of transhipped cargo the port dues related to the transhipped quantity in tons (transhipped quantity x cargo rate). Step 5: Determine the amount on port dues owed to PoRA NV by adding the result of step 2 with the lowest result of step 3 and 4. Port dues are calculated using two extremes to obtain the range of the indicative financial impact for the PoR: 1. Ship of 5,500 GT (= approx. 8,000 DWT) transferring 3,000 ton cargo. 2. Ship of 11,500 GT (= approx. 20,000 DWT) transferring 5,000 ton of cargo 26 www.portofrotterdam.com/nl/Scheepvaart/havengelden/Documents/general-terms-conditions-2012.pdf Impact inert Gas <20 kDWT tankers Final Report 9X0291/R00002/410410/Nijm - 29 - 8 February 2012 In Table 6-1, this additional service time due to IGS activities is converted to lost port dues for the PoRA, indicating the worst case scenario in which all additional service time will lead to a decrease in ship calls in the PoR. Table 6-1: Port dues for two chemical tankers at high and low end of range 5,500 GT ship and 11,500 GT ship and 3,000 ton of cargo 5000 ton of cargo LG 2020 + AC GE 2020 + WC GT tariff 0.298 € * GT ship 1,639 3,427 € Cargo rate 0.485 * cargo transfer 1,455 2,425 € Total port dues 3,094 5,852 €/call 31 31 hours 3,159 19,051 hours calc. port dues Average service time 27 Total impact GE 2020 Reduction ship calls Lost port dues Conversion rate January 2012 Lost port dues 6.2.2 102 615 315,321 3,601,170 1.31 1.31 414,521 4,734,098 unit calls/year €/year €/$ $/year Indication of Costs for Additional Facilities (Jetties) If a berth suffers from a high impact, it is most likely that mitigation measures will be taken specifically for that berth as soon as the cost of such measures outweighs the benefits. If the availability of jetties will become a bottleneck in the logistic chain the impact can be mitigated by constructing new jetties. The most impacted berths in the PoR as presented in paragraph 4.6.2 are located at different companies (e.g. ESSO, Odfjell, VOPAK TTR, VOPAK Botlek zuid, VOPAK Chemiehaven, LBC, CALDIC, RUBIS, STR, Shell Pernis and Buoy 61). Hence, if the impact has to be mitigated by constructing new berths/jetties this will be complex, since cargo transfers cannot be optimized between the different terminals. A waiting berth is expected to cost approximately 2 - 4 M€ (4 mooring piles suitable for berthing a 8,000 – 20,000 DWT ship). A complete jetty costs approximately 10 - 12 M€. 6.3 CAPEX and OPEX Ship For ships the main costs to comply with the new IGS requirements will be: 1. Lost revenues due to delay; 2. OPEX of the IGS; 3. Additional ship building costs for IGS. 27 Average service time for tankers calling at most impacted berths, see table 4-5 Impact inert Gas <20 kDWT tankers Final Report 9X0291/R00002/410410/Nijm - 30 - 8 February 2012 6.3.1 Lost Revenues due to Delay Based on the interviews, the additional service time can be converted into a financial impact for ship operators at the following rates: 14,000 $ per day for a 8,000 DWT ship 22,500 $ per day for a 20,000 DWT ship In Table 6-2 all additional service time caused by IGS is converted into lost revenues for ship operators for two scenarios: LG 2020 +AC = Low Growth scenario + average case impact calculated for an 8,000 DWT ship; GE 2020 + WC = Global Economy + worst case impact calculated for a 20,000 DWT ship. The range of lost revenues for ships in the PoR is presented in Table 6-2. Table 6-2: Estimated lost revenues ship operators / charterers in PoR LG 2020 + AC GE 2020 + WC Unit 3,159 19,051 hours 1,842,939 17,860,500 Total impact Lost revenues $ Contracts mostly include demurrage28 clauses to charge the charterers for costs of extra service time when the agreed maximum service time is exceeded. But, whether the ship operator or the charterer have to pay the additional costs, in the end the cost of product transfer will be affected and it will be added to freight tariffs. 6.3.2 CAPEX and OPEX of the IGS Costs of operation of IGS include: 1. Investment for IGS 2. Diesel consumption for power generation to operate IGS; 3. Maintenance, depreciation and insurance costs for IGS; 4. Increased CO2 emissions (currently the shipping sector is not included in the European Emission Trading Scheme, but possibly it will be included in the future). 5. Labour related to increased complexity of operational procedures; 6. Measures to control the risk associated with tank entries. Ad 1: Investment for IGS Depending on the required capacity, indicative equipment costs are presented in Table 6.3 Equipment costs of an IGS are presented for nitrogen generators with different capacities29 (flow rates are given for nitrogen production with 5% remaining oxygen content): 28 The term demurrage refers to the period when the charterer remains in possession of the vessel after the period normally allowed to load and unload cargo. By extension demurrage refers to the charges that the charterer pays to the ship owner for its extra use of the vessel. Officially, demurrage is a form of liquidated damages for breaching the service time set out in the contract. 29 Based on information from a supplier of IGS for ships. Impact inert Gas <20 kDWT tankers Final Report 9X0291/R00002/410410/Nijm - 31 - 8 February 2012 Table 6-3: Indicative equipment costs new built IGS Capacity of nitrogen Equipment cost new built ship 3 [in m /hour] [in $] 300 158,000 410 184,000 550 210,000 750 226,000 1000 263,000 Ships may choose to install two separate installations of 50% of the required capacity to obtain redundancy and gain reliability if one of the systems is not working properly. Ad.2 Fuel consumption The expected fuel consumption for the additional IGS requirement is calculated in chapter 5. In both the Low Growth (LG 2020) and the Global Economy scenario (GE 2020) the oil prices are expected to be low, therefore the actual price for Marine gasoil30 on February 7 2012 in Rotterdam (991.5 $/ton) is indexed with 1.5 % per year towards 2020 to obtain a marine gasoil rate of 1.12 $/ kg. Table 6-4: Diesel consumption IGS systems in the PoR GE 2020 purge LG 2020 blanket Diesel consumption 4,174,559 715,639 kg/year Diesel cost 4,662,638 799,309 $/year Ad 3. Maintenance, depreciation and insurance costs for IGS The calculation of maintenance, depreciation and insurance costs for IGS will acount for approximately 9% of the equipment cost. This is based on the following assumptions: maintenance 4%; depreciation 25 year; insurance 1%. For a 263,000 $ IGS this would mean roughly 23,662 $/year. Ad 4 - 6 These are considered secondary effects of IGS and are therefore not elaborated on. 6.3.3 Costs for Shore Supplied Nitrogen Based on the interviews shore supplied nitrogen ranges from 0.04 €/m3 at refineries or chemical plants up to 1.05 €/m3 at terminals. 6.4 Terminal Terminals will be subject to the following financial impact: 1. Lost revenues by decreasing throughput if ships will avoid the PoR 2. Cost of additional vapour treatment 3. (possibly) de-bottlenecking of shore supplied nitrogen systems Ad. 1: Lost revenues 30 Prices in US$ per metric tonne, delivered on board basis Impact inert Gas <20 kDWT tankers Final Report 9X0291/R00002/410410/Nijm - 32 - 8 February 2012 If it is assumed that extra service time will become a bottleneck for throughput then terminals will lose revenues due the additional IGS requirements. However, since commercial contracts between terminals and their clients are very different depending on types of chemicals, throughput volumes and storage duration it is not possible to estimate the lost revenues of extra service time. Ad. 2: Cost of additional vapour treatment The cost of additional vapour treatment can be calculated using the natural gas consumption as stated in Paragraph 5.3, which adds up to approximately 47,000 $ in the LG 2020 blanket scenario and in the worst case 274,400 $ for the GE 2020 purge scenario at a tariff31 of 0.39 $/Nm3 This is just the natural gas consumption, but also other OPEX factors will increase due to increasing utilisation of vapour treatment facilities. These are however depending on each specific situation and therefore not elaborated on in this study. Ad. 3: (possibly) de-bottlenecking of shore supplied nitrogen systems If the capacity of the nitrogen distribution systems will become a bottleneck at terminals in most cases only the nitrogen distribution system at the jetties needs to be modified. Since these costs are very location specific they will not be estimated in this study. 7 CONCLUSIONS 7.1 Impact on the PoR The additional IGS activities will lead to additional service time, but to what extent will mainly depend on the operational optimization that the sector can realize (like for instance remote survey, also see paragraph 3.4). The range in expected impact is summarized below for the two growth scenarios for 2020. Table 7-1: Impact on the PoR for the average (AC) and worst case (WC) impact on service time Unit LG 2020 GE 2020 1,191 impacted calls [#] 953 Total impact PoR_AC* [hour] 3,159 3,949 Total impact PoR_WC* [hour] 15,241 19,051 * Total delay PoR_AC.IMP = total delay in the PoR using the average impact of 3,5 hours ** Total delay PoR_WC.IMP = total delay in the PoR using the average impact of 16 hours The maximum impact in 2020 will thus be 19,051 hours of additional service time, divided over 82 berths in the PoR but highly concentrated in the Botlek area (3rd petroleumhaven, chemiehaven, torontohaven and werkhaven). However the average impact (3,159 hours) is an optimistic approach, since it is based on ships with high capacity IGS and highly optimized logistic management. This will not be technically and economically feasible for all types of ships and all types of ship operators. The impact is therefore expected to vary between the average and maximum approach. 31 http://statline.cbs.nl Impact inert Gas <20 kDWT tankers Final Report 9X0291/R00002/410410/Nijm - 33 - 8 February 2012 7.2 Impact on Ships 7.2.1 Additional Service Time Average impact on ships will be around 3 hours and 27 minutes of extra service time if inert gas systems are installed and logistics can be optimized. For some ships the impact will be higher, up to 16 hours per call. In the tables below the ship impact is summarized: Table 7-2: Inerting Time for 40,000 DWT ship Inerting time per call unit Average port logs [h:mm/call] 4:49 Table 7-3: Blanketing Time for 40,000 DWT ship Blanketing time per call unit Average port logs [h:mm/call] 2:21 Port logs Interviews unit Average optimized Worst case scenario Table 7-4: Service time Service Time 7.2.2 scenario Total Service Time [h] [h:mm/call] 46:19 50 Extra ST because of Inert Gas Activity [h:mm/call] 3:27 16 Lost Revenues for Ship Operators or extra Costs for Charterers Lost revenues for ship operators or extra costs for charterers due to extra service time in the PoR is presented in table 6-2, where all additional service time caused by IGS is converted into lost revenues for ship operators for two scenarios: LG 2020 +AC = Low Growth scenario + average case impact calculated for an 8,000 DWT ship; GE 2020 + WC = Global Economy + worst case impact calculated for a 20,000 DWT ship. Table 7-5: Estimated lost revenues ship operators / charterers in PoR Unit LG 2020 + AC GE 2020 + WC Total impact hours 3,159 19,051 Lost revenues $ 1,842,939 17,860,500 Contracts mostly include demurrage32 clauses to charge the charterers for costs of extra service time when the agreed maximum service time is exceeded. But, whether the ship operator or the charterer has to pay the additional costs, in the end the cost of product transfer will be affected. 32 The term demurrage refers to the period when the charterer remains in possession of the vessel after the period normally allowed to load and unload cargo. By extension demurrage refers to the charges that the charterer pays to the ship owner for its extra use of the vessel. Officially, demurrage is a form of liquidated damages for breaching the service time set out in the contract. Impact inert Gas <20 kDWT tankers Final Report 9X0291/R00002/410410/Nijm - 34 - 8 February 2012 7.2.3 OPEX of IGS The operation of IGS leads to additional fuel consumption for power generation and other operation costs of operating IGS. The expected additional diesel consumption is presented in Table 6-4. Table 7-6: Diesel consumption IGS systems in the PoR GE 2020 purge LG 2020 blanket Diesel consumption 4,174,559 715,639 kg/year Diesel cost 4,662,638 799,309 $/year Main other OPEX are maintenance, depreciation and insurance costs for IGS. The calculation of maintenance, depreciation and insurance costs for IGS will acount for approximately 9% of CAPEX. For a 1,000 m3/hour IGS (investement approximately 263,000 $), this would mean roughly 23,662 $ per ship per year. The cost for shore supplied nitrogen varies from 0.04 €/m3 at refineries or chemical plants up to 1.05 €/m3 at terminals. 7.3 Terminals Main impact for terminals will be an increase in jetty utilisation. For the berths in the PoR, a maximum increase of 20% was calculated. For the highest impacted berths an average increase of 11% in utilisation rate was calculated. For many of these berths, this is expected to cause logistic problems, since utilisation rates will rise above 70% or 80% (which will cause extra waiting times and is expected become a bottleneck for throughput of volumes of this type of cargo). The majority of impacted berths are located in the 3rd petroleumhaven. 7.4 Summary of Financial Impact Table 7-1: Summary of financial impact Party Financial impact PoRA Lost port dues PoR Ship operators charterers Lost revenues Ship operators charterers Diesel consumption Ship operators charterers Depreciation, maintenance & insurance. Terminals Natural gas vapour treatment Total LG 2020 + AC GE 2020 + WC 414,521 4,734,098 1,842,939 17,860,500 $/year 799,309 4,662,638 $ /year $/year See note below 47,039 274,394 $ /year 3,103,808 27,531,630 $ /year Depreciation, maintenance and insurance costs for IGS are estimated at approximately 9% of the equipment cost (maintenance 4%; depreciation 25 year and insurance 1%). For an IGS with a capacity of 1,000 m3/hour, costing approximately 263,000 $ this would mean 23,662 $/year. Depending on a.o. the ships pump capacity, each ship type will select a suitable IGS capacity. Due to the fact that sea vessels berth at various ports Impact inert Gas <20 kDWT tankers Final Report 9X0291/R00002/410410/Nijm - 35 - 8 February 2012 worldwide, the costs of depreciation, maintenance and insurance cannot be assigned to costs for the PoR in particular. Other impacts that are not included in this summary are ship to ship transfers between sea going ships and barges. In these cases the barges would be effected by the new IGS requirements as well. Impact inert Gas <20 kDWT tankers Final Report 9X0291/R00002/410410/Nijm - 36 - 8 February 2012 Annex 1 Ship and cargo types Impact inert Gas <20 kDWT tankers Final Report 9X0291/R00002/410410/Nijm 8 February 2012 SHIP TYPES Chemical tanker 6. Tank heating / tankwash room 14. Tanktop 8. Vent pipes with pressure-vacuum valves 15. Longitudinal vertically corrugated bulkhead 11. Manifold 16. Transverse horizontally corrugated bulkhead 13. Double bottom tank 22. Cargo heater Tank instrumentation chemical tanker Impact inert Gas <20 kDWT tankers Final Report Annex 1 -1- 9X0291/R00002/410410/Nijm 8 February 2012 Relevant cargo types Relevant cargo types are flammable liquids with a flashpoint below 60°C as listed in Marpol annex II (further referred to as low flashpoint cargo). Below some relevant examples of low flashpoint chemical cargoes are given that are frequently transferred in the Port of Rotterdam: Acetic anhydride; Acetone; Acrylonitrile; Benzene and mixtures having 10% benzene or more; Decene; Ethyl alcohol; Hexane (all isomers)l; Isobutyl alcohol; Methyl alcohol; Pyrolysis gasoline; Reformate benzene heartcut; Styrene monomer; Ethyl alcohol. Impact inert Gas <20 kDWT tankers Final Report Annex 1 -2- 9X0291/R00002/410410/Nijm 8 February 2012 Annex 2 Inert Gas systems Impact inert Gas <20 kDWT tankers Final Report 9X0291/R00002/410410/Nijm 8 February 2012 INERTING OPERATIONS OF CARGO TANKS The following scenarios illustrate the different uses of IGS33. 1. Discharge When a tanker has reached destination and is discharged, the IGS is started as a parallel activity. As the volume of cargo decreases in the tank, this volume is replaced by inert gas, thus preventing the ingress of oxygen in the tank. 2. Cleaning Tank cleaning is required ff the next cargo to be loaded is not compatible with the discharged cargo. During tank cleaning the tanks must remain fully inerted due to the risk of sparks caused by equipment/fittings falling down inside the tank of static electricity produced by water jets from cleaning machines. For oil products flue gas can be used as an inert gas and nitrogen is used as an inert gas for low flashpoint chemical cargoes. 3. Purging To dilute or displace the hydrocarbon vapour to a level at which combustion cannot take place (generally a level below 10% of LEL34), the tanks, now filled with hydrocarbon vapour and inert gas, are purged and filled with IG. In the case of a product tanker the common IG is flue gas which is injected through a system at the deck (left figure). Chemicals tankers commonly use nitrogen as IG, and often use the cargo lines for purging (right figure). 33 34 http://thenauticalsite.com/Advanced%20Notes/Inert%20Gas%20Sys%20Ops.htm LEL= Lower Explosion Limit Impact inert Gas <20 kDWT tankers Final Report Annex 2 -1- 9X0291/R00002/410410/Nijm 8 February 2012 The flow of nitrogen received from shore may be as low as 100m3/hr or as high as several thousand m3/hr. In all cases the atmosphere in the cargo tank will be replaced by nitrogen. As a rule of thumb the Oxygen content in a cargo tank will be reduced by 50% by exchanging the tank volume once. This means that 3000 m3 of Nitrogen will be needed to purge a 1000 m3 tank from 21% down to about 6.25% oxygen (which is well below the required 8% oxygen). 4. Gas Freeing & survey Before loading a new product in a chemical tanker, the empty tanks are freed of containing gases and filled with ambient air, allowing people to enter the tank for a survey of the tanks. For oil products the chance of having a compatible next cargo is bigger than for chemical products. Impact inert Gas <20 kDWT tankers Final Report Annex 2 -2- 9X0291/R00002/410410/Nijm 8 February 2012 5. Inerting To decrease the level of oxygen back to a level at which combustion cannot take place, the tanks, now filled with ambient air, are purged and filled with IG. In the case of a product tanker the common IG is flue gas which is injected through a system at the deck. Chemicals tankers commonly use nitrogen as IG, and often use the cargo lines for purging. The process of inerting is equal to purging, except that after inerting the tank is directly sealed instead of starting the process of gasfreeing. For an illustration please see the figure for purging. 6. Loading As cargo is loaded into the tank the mixture of vapour and IG is pushed out of the tank via the stack or to the vapour recovery system35. 7. Topping up To prevent oxygen from entering the tank when sailing, the IGS is used to keep a positive pressure in the tank. 8. Blanketing As an alternative to the procedure of inerting before loading, blanketing can be applied after loading. Tank blanketing (also referred to as tank padding) is the process of applying inert gas to the empty space above the loaded product in the cargo tanks. Dilution versus displacement method The term purging is used to describe the introduction of inert gas into a cargo tank with the object of reducing the hydrocarbon content and/or further reducing the oxygen content. Purging is carried out by the dilution or displacement method. 35 In most cases the product vapours are led to a gas treatment plant where the gas is treated before admittance to atmosphere. Impact inert Gas <20 kDWT tankers Final Report Annex 2 -3- 9X0291/R00002/410410/Nijm 8 February 2012 Dilution method This means forced mixing with high velocity injection of inert gas. On a ship which is not fitted with a purge pipe in the cargo tanks, this method is applied. In this case, the tank atmosphere is diluted by inert gas. Displacement method Here the tank atmosphere is filled with inert gas by utilization of density difference between inert gas and cargo vapour. If a ship is fitted with a purge pipe in the cargo tanks, this method is applied. Inert gas being supplied is kept at a low velocity to minimize mixing with cargo vapour. Tank cleaning and inspection will be effected due to the use of nitrogen. Entering tanks / holds with reduced oxygen is extremely dangerous and will lead to fatal injuries within seconds. Due to this risk stringent safety procedures for cleaning and inspection will have to be arranged to control this risk. Impact inert Gas <20 kDWT tankers Final Report Annex 2 -4- 9X0291/R00002/410410/Nijm 8 February 2012 Annex 3 Data collection Impact inert Gas <20 kDWT tankers Final Report 9X0291/R00002/410410/Nijm 8 February 2012 DATA COLLECTION Data is derived from: Port of Rotterdam Public documents; Data sheets (IVS); Interviews. Interview with independent terminals Odfjell Terminals Rotterdam. Vopak. Interview with Chemical Marine Technical Advisor of Shell Interviews with ship-operators Stolt Tankers; Marine Facilities Management; North Sea Tankers. Inert Gas Installation producers and installers Verhaar Omega. Impact inert Gas <20 kDWT tankers Final Report Annex 3 -1- 9X0291/R00002/410410/Nijm 8 February 2012
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