Keeping Axiall Products on the Rails
First in a three-part series on Axiall transport systems
In 2014, Axiall produced and shipped nearly 18 billion pounds
of product—almost 25,000 tons per day. Shipments of raw
materials and finished products continuously flow in and out
of company facilities, and the Axiall Supply Chain team is
responsible for ensuring this flow of materials meets safety and
regulatory requirements.
The team manages five major types of transportation assets: railcars, barges,
ocean-going vessels, ocean containers and trucks, and operates under three guiding
principles related to the safe transport of products.
“Our team’s first guiding principle is to ‘protect the environment, health and safety
of those touched by our supply chain assets,’” said Sharon Piciacchio, senior vice
president of supply chain. “To do this, we also must ‘comply with all laws, rules and
regulations,’ which is our second guiding principle. Our third guiding principle focuses
on advocacy—to ‘ensure the continued ability to transport hazmat products.’”
The work involved in adhering to these principles and ensuring the safe transport of
Axiall products is significant. Cross-location maintenance teams work to ensure the
company’s assets comply with regulatory requirements from the Federal Railroad
Administration, U.S. Coast Guard, Pipeline and Hazardous Material Administration
and other U.S. Department of Transportation and Transport Canada agencies.
Similarly, the Axiall Shipping and Loading team focuses on consistent operating
procedures for transportation assets, safety of personnel and the integrity of the
company’s shipping packages.
“Axiall has been recognized for high performance in product safety during
transport,” said Tom Deutsch, vice president of supply chain. “Over the past two
years, we received safety awards from all of the major railroads we work
with, as well as the barge lines with which we contract.”
One of the key components of the Supply
Chain team’s work involves the third guiding
principle, protection of Axiall’s ability to ship
its products. This principle is particularly
relevant to rail transport.
“Shipping of hazardous materials has come
under extreme pressure, especially by rail,”
said Sharon. “Recent rail accidents involving
crude oil have raised public awareness
and the government is responding with
increased regulations. The railroads do not
want to handle high hazard materials, such
as chlorine, a poisonous inhalation hazard.
The railroads are attempting to push their
liability to the shipper and raise rates.”
Axiall is involved in a number of industrywide efforts to advocate for the continued
ability to ship products. The company
works closely with the Chlorine Institute
(CI), a technical trade association of chloralkali companies involved in the safe
production, distribution and use of chlorine
and related materials. Sharon serves on
the organization’s board of directors and
the board committee on rail issues. She
and other Axiall personnel are active on
the CI transportation team, which focuses
on increasing safety, ensuring regulatory
compliance and working with regulatory
agencies. Company representatives also
participate in CI’s chlorine emergency
response plan (CHLOREP), supplementing
local emergency response
efforts with industryspecific knowledge,
material and equipment in the event of a
chlorine-related incident.
Axiall also is a long-standing member of the
American Chemistry Council (ACC), a trade
association representing leading companies
engaged in the business of chemistry. Axiall
President and CEO Paul Carrico serves
on the organization’s board of directors
and is chairman of the Responsible Care
Committee, which focuses on upholding
the highest standards for protecting health,
safety and the environment. Tom Deutsch
represents Axiall on the ACC’s distribution
committee, a group focusing on legislative
and regulatory issues at both the national
and state level. The distribution committee’s
work includes actions to promote rail
competition and ensure shippers’ rights
to transport hazardous material, as well
as collaboration with the Association of
American Railroads’ tank car committee on
safer, more advanced designs for rail cars.
aboutaxiall
This article was published in the summer 2015 issue of intersection, a quarterly magazine
for and about the employees of Axiall Corporation.
“Overall, the chlor-alkali industry has
an excellent safety record,” said Sharon.
“Maintaining and enhancing Axiall’s own
safety record is a critical focus area for
our team. We work with ACC and CI on
important rail issues and advocate for
solutions that take a holistic approach
to safety, one based on sound science.”
continued on page 3
Axiall rail cars at the company’s facilities in
Lake Charles, La. Axiall owns and leases more
than 6,000 pieces of rail equipment.
1
2
aboutaxiall
In-Depth:
Rail Transport at Axiall
Axiall owns and leases more than 6,000 pieces of rail
equipment. The fleet is a mix of hopper cars, general
purpose tank cars and pressure tank cars. Each type
of car has a different purpose and is used to haul
different products.
While the company ships products like chlorine, caustic, PVC resin
and vinyl-chloride monomer via rail to customers located throughout
Canada, Mexico and the U.S., products also are moved via rail from
one Axiall location to another. For example, vinyl-chloride monomer
produced at Axiall’s Lake Charles North and South plants is sent to
the Aberdeen, Miss., facility for PVC production. In turn, some
PRODUCTS
PVC produced at the Aberdeen, and Plaquemine, La., plants is
SHIPPED BY RAIL
shipped to a variety of Royal Building Products locations,
3%
including those in Columbus, Ohio, Bristol, Tenn., and
PVC
Abbotsford, British Columbia, where it is used to create
5%
Compound
4%
Other
end products like pipe and vinyl siding.
Salt
5%
Muriatic
Acid
10%
Chlorine
34%
PVC Resin
15%
VCM
24%
Liquid Caustic
PRESSURE
TANK CARS
Axiall uses pressure tank cars
to haul chlorine, a material for
which these types of tank cars
are a safe and proven method
of transport. Pressure tank cars
are unique in how they are built,
and Axiall’s are made specifically
to hold chlorine. They are thicker
and heavier than other rail cars,
and feature insulated tanks and
outer jacket construction. Each
of these cars is also equipped
with a pressure relief valve,
which is activated if the pressure
inside the car reaches an
undesirable level.
3
HOPPER CARS
Hopper cars are basic rail cars—
dry containers used to transport
Axiall products like PVC and
pellet materials in covered bins.
General purpose cars are a bit
different. According to Matt Bond,
area supervisor in the shipping
department at Axiall’s Natrium,
W.Va., facility, general purpose cars
can haul “anything from caustic
soda to corn syrup,” but each car is
dedicated to one commodity—a car
transporting one product normally
would not be repurposed to haul a
different product. At the Natrium
plant, general purpose cars are
primarily used to haul caustic—the
site’s most frequently shipped
product—and hydrochloric acid.
Regardless of where products are headed
on the railways, the Axiall team is focused
on their safe transport. The Federal Railroad
Administration (FRA) and Association of
American Railroads require regular inspection
of railcars to ensure they are in proper
condition to safely carry the materials for
which they are designed. Additionally,
railcar trucks and safety equipment undergo
inspection by plant personnel, Axiall customers
and railroad workers. Axiall conducts internal
audits to ensure the rail fleet is in compliance
with all regulatory requirements, and the FRA
also conducts periodic inspections of Axiall
plants and rail assets.
“The safe transport of
our products is our number
one priority.”—Tom Deutsch,
vice president of supply chain
“We continuously monitor rail incidents
and trends, making sure we’re aware of
any additional actions we need to take to
safely operate and maintain our fleet,” said
Tom. “The safe transport of our products is
our number one priority.”
4
Keeping Axiall Products Flowing:
An In-Depth Look at Axiall’s Marine Transport System
Second in a three-part series on Axiall transport systems
In 2014, Axiall produced and shipped nearly 18 billion pounds
of product—almost 25,000 tons per day. Marine transport, the
movement of material by barges, ocean-going vessels and ocean
containers, makes up approximately 50 percent of that total. Read
on for an in-depth look at Axiall’s marine transport system.
Axiall uses three types of vessels to move
products by water: barges, ocean-going
vessels and ocean containers.
Inland river barges are used to move caustic
soda, chlorine, solvent products, cumene
and acetone from Axiall locations in Lake
Charles, La., Natrium, W.Va., Pasadena,
Texas and Plaquemine, La. Axiall owns 59
inland river barges and supplements its
fleet with leased resources.
“Shipping by barge is the lowest cost and
most environmentally friendly means
of domestic transportation,” said Scott
Thumma, marine manager, based in Axiall’s
Pittsburgh office. “One caustic soda tank
barge can hold the same amount of product
as 15 rail cars or 65 trucks, reducing both
the fuel consumption and air quality impact
associated with transport. That said, it’s also
the slowest way to move materials—it takes
5
about 33 days for a barge from Lake Charles
to make its way to the Pittsburgh area—and
not all of our customers can receive products
by barge.”
While caustic soda makes up the vast
majority of Axiall customer shipments
transported by water, the company ships
chlorine using this method, too. In fact,
Axiall’s Natrium facility was one of the first
in the U.S. to ship chlorine by barge. The
plant’s location on the Ohio River, and the
concentration of chemical industry in the
Ohio Valley, made it ideal for this purpose.
“Transportation of chlorine by barge plays
a role in balancing operations in Axiall’s
chlor-alkali network,” said Mark Sinclair,
manager of customer service and logistics at
the Natrium facility. “Chlorine is transferred
internally from Natrium to the Lake Charles
facilities when additional material is needed.
This gives us some flexibility in managing
chlorine and caustic operating rates and
allows us to efficiently meet the demand
for each product in different regions of the
country.”
Axiall works with a number of bargetowing companies to hire boats to push its
barges and ensure delivery to customers
near and far. In 2014, Axiall-owned barges
moved nearly 300,000 miles over the U.S.
inland river system, delivering products to
customers in Illinois, Minnesota, Mississippi,
Pennsylvania and Texas.
Axiall also ships product in bulk to domestic
and foreign ports. The Chemical Pioneer,
pictured here at Axiall’s Plaquemine facility,
is an example of an ocean-going U.S. flag
vessel that Axiall uses to deliver caustic soda
to ports along the U.S. East coast. All vessels
shipping from one U.S. port to another
must be certified as U.S. flag vessels—
meaning they were built in the U.S. and are
crewed by U.S. citizens. Foreign flag vessels,
in contrast, move caustic soda, phenol and
solvents from Axiall facilities in Louisiana
and Texas to international customers
located in places like Brazil, Jamaica, Korea
and Ireland.
of product. Axial uses 20- and 40-foot
containers to ship caustic soda and solvents,
as well as products like calcium hypochlorite
from the Water Treatment Products
business, compounds and resins, to more
than 30 international ports each year.
Safety and regulatory compliance are
priorities for Axiall’s supply chain team,
which is responsible for marine transport.
“The first guiding principle of our
supply chain operation is to ‘protect the
environment, health and safety of those
touched by our supply chain assets,’” said
Tom Deutsch, vice president of supply chain
operations. “To do this, we must ‘comply
with all laws, rules and regulations,’ which is
our second guiding principle.”
aboutaxiall
This article was published in the fall 2015 issue of intersection, a quarterly magazine
for and about the employees of Axiall Corporation.
All marine transport is highly regulated
by both the U.S. Coast Guard and the
Environmental Protection Agency (EPA).
Routine maintenance and inspections
of Axiall-owned barges are conducted at
shipyards located along the Mississippi
River, Ohio River and Intracoastal Waterway,
where Axiall houses its fleet.
continued on page 7
Axiall contracts for space on international
ocean container vessels, which are used for
the import and export of smaller quantities
6
aboutaxiall
Marine Transport by the Numbers:
Keeping Axiall Products...continued from previous page
“Our barges operate under a Vessel General
Permit issued by the EPA, and the overall
condition of Axiall-owned barges is reviewed
during annual inspections by the Coast Guard,’”
said Byron Martin, maintenance unit manager
at Axiall’s Lake Charles South facility. “Every five
years, the Coast Guard conducts inspections of
the internal steel structure of the barges, and
every ten years, the barges are lifted out of the
water on a dry dock so the Coast Guard can
inspect their hulls.”
with four independent high-pressure, cylindrical
tanks surrounded by multiple water-tight
compartments.
Security is a big concern for the supply chain
team, particularly when chlorine, a poisonous
inhalation hazard, is involved. Features unique
to chlorine barges ensure safe transport of the
material: each chlorine barge is double-hulled,
“We ensure all appropriate safety measures
are followed in the operation of our fleet, and
maintain a detailed plan outlining what to do
if there is a security threat,” said Byron, who is
also the vessel security officer of record for all
Axiall-owned barges. “We take our commitment
to safety and security very seriously.”
All of the 59 Axiall-owned barges are equipped
with GPS tracking units, ensuring that the
company is always aware of where its marine
assets are located. Chlorine barges are also
equipped with underwater acoustic beacon
locators, similar to those found in airplanes.
These locator devices allow for the underwater
tracking of assets, should that need arise.
• Axiall owns and operates a fleet of 59 double-hull
chemical tank barges.
• Axiall manages approximately 1,600 inland river
barges across its facilities each year.
• Traditionally, marine vessels are named after
people. Four Axiall-owned barges are named after
longtime employees: the R.D. Osucha, the A.G.
Baker, the J.R. Farst and the Alice J., a tribute to the
key contributions these individuals made to their
business unit or function.
• In 2014, Axiall-owned barges moved nearly 300,000
miles over the U.S. inland river system.
• The names of the 55 other Axiall-owned barges
begin with the prefix “AXL.”
• The largest vessel ever loaded at Axiall was the
Bakkedal, loaded at the Lake Charles facilities in
April 2014. The team loaded nearly 100 million liquid
pounds of caustic soda—enough to fill 525 rail cars
or 2,225 trucks.
• Axiall ships its products to more than 30
international ports each year.
Axiall products are loaded
onto company-owned and leased
barges at the Lake Charles, Natrium
and Plaquemine facilities.
• Caustic soda is produced by, and shipped
from, Axiall locations in Natrium, Plaquemine
and Lake Charles.
• Chlorine is produced and shipped from Axiall
locations in Natrium and Lake Charles.
• Solvents are produced by, and shipped from, Axiall
facilities in Lake Charles.
• Acetone is produced by, and shipped from, Plaquemine.
7
“We ensure all appropriate
safety measures are followed
in the operation of our fleet.”
—Byron Martin, maintenance unit manager,
Lake Charles South
8
On the Road with Axiall Products
Final installment in a three-part series on Axiall transport systems
While rail and marine transport are limited by a facility’s
proximity to railroads and waterways, easy access to roads
means that every Axiall and Royal Building Products facility
can ship products by truck. The company uses several types of
trucks and employs a variety of loading methods, depending
on the product being shipped and the needs of the customer.
Three main types of vehicles are used
for transporting Axiall’s chemical
products: tank trucks, hopper
trucks and dry vans. Tank trucks are
used to ship liquid chemicals like
caustic soda, while hopper trucks
are dry containers used to ship
bulk quantities of products like PVC
resin and compound. Dry vans, the
18-wheel tractor-trailers often seen
traveling on interstates, are used to
ship products packed into drums,
industrial sacks and boxes on a pallet.
“The Chemicals division is responsible
for more than 70,000 truck shipments
each year,” said Bruce Sullivan,
manager of transportation and
logistics at Axiall.
“The Chemicals division
is responsible for more
than 70,000 truck
shipments each year,”
—Bruce Sullivan, manager of
transportation and logistics
aboutaxiall
This article was published in the winter 2015 issue of intersection, a quarterly magazine
for and about the employees of Axiall Corporation.
“While a truck can’t hold as much
product as a railcar or a barge,
over-the-road shipping is the fastest
mode of transport. For example, a
truck traveling from our facility in
Plaquemine, La., to a customer in
Memphis, Tenn., will arrive in two
days. Rail transit time for this route
is six days, and barge shipments will
take closer to 10 days to arrive.”
“That said, faster arrival times equal
higher shipping costs: Trucking
is the most expensive way to
move products,” Bruce continued.
“However, because not all of our
customers can receive products by
rail or barge, it’s important that we
have a robust capability to transport
our products over the road.”
continued on page 11
Brandon Benson, yard operator, loads a
PVC resin truck at Axiall’s Aberdeen, Miss.,
chemicals facility.
9
10
aboutaxiall
On the Road...continued from previous page
SGS Petroleum Service Corporation
Contractor Hunter Acosta loads caustic
soda into a tank truck at Axiall’s
Plaquemine, La., chemicals facility.
Royal products shipped by truck
include trim, moldings, siding,
window and door parts, pipe and
fittings. These products come in a
variety of shapes, sizes and weights.
PVC siding and molding, for example,
is often shipped in 20-foot lengths.
So, Royal utilizes specialized trucking
equipment to best serve customers
who purchase these products.
“It can be tough to maneuver our
products in and out of standard
trailers,” said Cliff Sturgill,
transportation manager based at
Royal’s Marion, Va., moldings facility.
“Curtain-side trailers, with sides that
can be pulled back just like a curtain,
11
allow us to just slide the product in on the
side and latch it down, while also expediting
the unloading process for our customers.”
are shipped using the best transportation
services at the lowest cost while meeting
the needs of customers.
A key tool in Royal’s distribution strategy
involves contracted arrangements with
third-party supply chain partners. For
example, the Royal facilities in Bristol and
Newbern, Tenn., and Marion, Va., have
a long-term partnership with Ryder. The
collaboration, which began more than 25
years ago, includes a dedicated fleet and
onsite support.
As with every mode of transport at Axiall,
safety is the first priority. Transportation staff
work to ensure that all third-party partners
are safe, high-quality carriers in good standing
with the U.S. Department of Transportation
and the Canadian Ministry of Transportation.
One important tool used to vet carriers is
Carrier411, a Web subscription service.
“Our arrangement with Ryder allows
us to consolidate loads and capitalize
on operational synergies between our
Tennessee and Virginia locations, while
also reducing fuel consumption,” said Cliff.
“Plus, it gives us flexibility – we can adjust
the contracted fleet according to customer
demand. All of these things ultimately
result in cost-savings for our company.”
The centralized Transportation Management
Team, located in Woodbridge, Ontario, and
in Pittsburgh, supports operations for both
Chemicals and Building Products. The team
currently supports 20 Royal facilities and six
Chemicals facilities, ensuring that products
“Carrier411 provides carrier safety ratings,
along with information on hours of service,
driver fitness, controlled substances and
alcohol and vehicle maintenance,” said
Cliff. “We only want the best, most reliable
carriers hauling our cargo and servicing
our customers.”
Pictured opposite left: A Ryder truck enters Royal
Building Products’ Marion, Va., moldings facility. The
Marion facility, along with Royal facilities in Bristol,
Tenn., and Newbern, Tenn., has contracted with Ryder
for more than 25 years.
Pictured middle: Curtain-side trailers like this one, with
sides that can be pulled back just like a curtain, allow
for easier loading and unloading of products like PVC
molding and siding, which can be up to 20 feet long.
12