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Phillips 66 – here to stay

There was a warm welcome for Jet authorised distributors at Phillips 66’s 2013 conference Earlier this month Phillips 66 welcomed customers – including authorised distributors – to its 2013 conference at Gleneagles, Scotland. Pete George, managing director of UK & Ireland marketing reiterated the company’s commitment to the market: “We recognise that we operate in an increasingly competitive market, but we have big ambitions and we wanted to use Gleneagles as an opportunity to reassure our wholesale customers that we are here to stay.” Refining and large-scale investment in cleaner fuels were also on the conference agenda.Read more about the event in the November issue of Fuel Oil News.

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White Rose director hangs up his boots

Over the finish line – John Roberts completes his fourth charity run John Roberts of Selby-based White Rose Fuel Services has completed his fourth (and last) run in memory of his daughter, Vicky, who lost her fight against cancer earlier this year.

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National award for Top Oil

Top Oil at the awards A Top Oil service station at Holycross in County Waterford recently won the Forecourt & Convenience Store of the Year award (category 2) at Ireland’s Forecourt & Convenience Retailer Awards 2013. “It’s unbelievable,” said Brian Mooney of the Holycross service station. “We’re 30 years in business and never expected this, we’re totally honoured and very grateful to the people that work around us.”Top Oil expands its distributor network – see page 23 in the November issue of Fuel Oil News.

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Adler & Allan – on the shortlist

The Sockit system in action Adler and Allan’s Sockit system has been shortlisted for the Energy Institute’s Innovation category awards. Used by the Environment Agency, National Grid, BP and Scottish Power, Sockit is a portable sock like device that harnesses multi-stage filtration, removing hydrocarbons and sediment to almost non-detectable levels as water is being pumped away – on average 99% removal. The system is reusable and recyclable and can be used in a wide range of de-watering applications such as oil tank bunds, trenches and boreholes without slowing the pumping process. Group sales and marketing manager, Alan Scrafton said: “We are extremely pleased to be shortlisted and of course, hope we win! Sockit is an excellent product that has made a significant impact to the effectiveness of contaminated water clean-up, while reducing cost and logistical issues.” EI award winners will be announced on the 14th November, at a ceremony in London. The Sockit system is among the products available on Adler & Allan’s spill care website – order.adlerandallan.co.uk

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Keeping an eye on fuel stocks

Cameron Forecourt’s TLS electronic gauges and environmental monitoring systems can keep a round-the-clock eye on fuel stocks “With around 3,000 incidents involving oil and fuel spills reported each year by the Environment Agency, the message is clear,” says Cameron Forecourt’s sales and marketing director, Martyn Gent. “Regular, planned maintenance is a far better policy than ad hoc repairs that amount to a forced purchase. Major incidents cost the owners of faulty or leaking installations an average of £30,000 each in fines and clean up costs. Fuel supplies need to be both safe and secure and operators need a clearly defined plan for regular maintenance, security and contingency in case of emergency,” adds Martyn. Cameron’s TLS range is capable of accurately detecting fuel stock depletion. Any unexplained reduction in stock deviations triggers an alarm. By linking to advanced fuel management systems, emergency messages can be sent instantly via SMS to enable immediate action. The company recommends regular inspections and maintenance – at least annually – to ensure that equipment is maintained in serviceable condition with tanks, pipework and dispense pumps all checked for leaks or potential problems. Cameron also offers comprehensive environmental surveys to assess and minimise risk, check legal compliance and offer the optimum most cost-effective solutions for any necessary remedial work. More than 30 engineers operate nationwide to provide contract and emergency service to customers with all types of fuelling installation. Cameron aims to have an engineer on site within 8 working hours for repairs and sooner for sites that are out of action or have possible environmental issues. www.cameron-forecourt.co.uk

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Fuel treatment for bulk storage

Bulk storage tanks can now be equipped with an innovative fuel quality treatment process thanks to a distribution agreement secured by Oil Tank Supplies (OTS). Based on E3 PLUS nanotechnology, the process is used to re-energise stored fuel by passing it through a recirculation system attached to the storage tank. Traditional fuel treatment packs supplied by OTS are designed to maintain fuel quality, post-delivery. This is achieved by re-circulating the fuel through two stages of filtration to remove particulates and water held in suspension. “The significance of this new technology is that we can provide a process which not only inhibits any degradation in quality, it actually reverses degradation, bringing the fuel passed through the system back to freshly refined spec, and restoring its calorific value,” explains sales director, Steve Gain. “The key benefit of incorporating the E3 PLUS Fuel Performance Unit is that it will eliminate the build-up of sludge deposits. By removing sludge from tanks we negate the customers need for expensive manned entry tank cleaning and the associated health and safety and other downtime issues.” An in-line device, it houses an insulated chamber specifically designed to reflect and intensify E3 PLUS emissions, altering and stabilising the fuel instantaneously as it passes through. This solution not only helps to prevent post-delivery contamination it also refreshes the product during storage.

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Tanker driver scoops top award

Barnaby (kneeling on left) with Wincanton’s Driver of the Year category winners Fuel tanker driver Barnaby Moverley has been crowned Wincanton’s Driver of the Year. Now in its eighth year, the competition saw 28 of Wincanton’s best LGV and FLT drivers go head to head in a test of their manoeuvring skills and driving competency with events such as blind man’s bluff and ten tilt bowling. After a day of tough competition, Barnaby, a driver on one of Wincanton’s fuel contracts with 16 years service, was awarded the prestigious LGV Driver of the Year accolade. Chief executive, Eric Born commented: ”The competition is a fantastic opportunity to showcase the skills and professionalism of our drivers, who play an integral role in delivering excellent service to our customers whilst maintaining the upmost levels of safety.”

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Tune into Road Safety Week

With just under a month to go until Road Safety Week, employers are being encouraged to get involved.

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Certas Energy acquires Advance Fuels

Certas Energy UK has acquired Advance Fuels, the oil distribution business of South Eastern Fuels that operates in the south east of England. South Eastern Fuels, which is owned by Mabanaft Limited, will continue to maintain and service its existing wholesaling and fuel card marketing activities. Advance Fuels sells heating and transport fuels to a broad range of domestic, commercial, agricultural and transport customers and operates from two depots. The oil distribution business will be integrated within Certas Energy UK Limited. In response to the sale of Advance Fuels, Raphael Hüttmann, director, South Eastern Fuels Limited, said: “The sale of Advance Fuels was a difficult however necessary decision. The board of directors of South Eastern Fuels decided that greater potential and value would be achieved for Advance Fuels by integrating its activities with an established operator in this competitive sector. We are delighted to have concluded a successful sale to one of the UK’s leading oil distribution businesses – Certas Energy.” Paul Vian, managing director, Certas Energy, commented: “This is a strategic acquisition for Certas Energy, which will further support our current distribution network and customer base across south east England. We are looking forward to meeting with our new colleagues at Advance as we integrate the business into Certas over the coming weeks and months.” With a network of over 150 depots, nearly 1,000 tankers and 2,500 employees, Certas Energy is the largest independent distributor of fuels and lubricants in the UK. Through its robust infrastructure Certas Energy can consistently and reliably deliver billions of litres of high quality fuel to customers across the UK. www.mabanaft.co.uk www.certasenergy.co.uk  

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Grangemouth shut down

Ed Davey Following the announcement that Grangemouth is to remain shut down, energy secretary Edward Davey said: “Grangemouth is an important part of the Scottish economy, with industry, jobs and people’s livelihoods at stake. I have worked hard with both sides to urge them to continue talking and find a way that secures a long-term future for Grangemouth. “Motorists should be assured that the Grangemouth shut down will not affect Scotland’s petrol and diesel supplies. We have been working closely with the fuel industry and Scottish Government to ensure robust contingency measures are in place.”

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Grangemouth strike averted

In a statement issued today (Wednesday 16th October 2013), energy secretary, Edward Davey said: “I am pleased that Unite have called off this weekend’s strike. I would urge both parties to continue to talk with the help of ACAS in order to reach a fair, sustainable resolution of their differences and ensure the long term future of the Grangemouth complex” “We have been working closely with the fuel industry and Scottish Government to put robust alternative fuel supply routes in place in case the refinery is forced to close.”  

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HFO consultation – two days left!

The Health and Safety Executive has published a consultative document – CD 262 – on draft regulations to implement article 30 of council directive 2012/18/EU, known as the Seveso III directive. This Directive concerns the control of major accident hazards involving dangerous substances. Article 30 amends the Seveso II directive (council directive 96/82/EC), in relation to the requirements for Heavy Fuel Oil (HFO). The document addresses proposals to amend the Control of Major Accident Hazards Regulations 1999 (COMAH) for HFO and associated amendment to relevant planning requirements. CD 262 can be accessed at www.hse.gov.uk/consult/condocs/cd262.htm. The questions within it can be completed online, by email or in writing and closes this Friday (18 October 2013).

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August update

January 2014 could bring higher European jet fuel prices. In recent months there has been a considerable degree of confusion regarding the EU’s Generalised Scheme of Preferences (GSP) and the impact it may have on oil prices within the EU. The GSP allows import tariff exemptions on goods from developing countries, thereby encouraging trade with poorer countries. It may come as a surprise that, at present, countries eligible to benefit from the scheme include Russia and most of the Persian Gulf (including Saudi Arabia).  However, the World Bank has now reclassified these nations as upper-middle income economies which will mean that, from 1st January 2014, all standard import tariffs will apply.  To compound matters further, Libya, a key supplier of jet fuel into the Med, is considered to be on the verge of a World Bank upgrade, so may soon be subject to the same import tariffs. Information coming out of Brussels on how this relates to oil imports has not exactly been clear: initial reports were that, as of the start of next year, all crude oil and refined product imports from the newly upgraded nations would be liable for duty at 4.7%.  This was swiftly followed by the news that all oil products would in fact remain exempt, before the latest update confirmed that jet fuel (kerosene) will be liable for duty whereas crude oil and low sulphur gasoil/diesel (less than 0.2% sulphur) imports will remain exempt. “If the planned changes do go ahead, a large amount of imported European kerosene will see price increases of 4.7%” What would be the implications of a 4.7% import tariff on kerosene jet fuel?  At present, the EU as a whole imports roughly one million tonnes of jet fuel per month from the Persian Gulf and North Africa, with imports nudging two million tonnes in peak (holiday) periods.  A source from a state run Persian Gulf oil refinery explained, “We are concerned these changes from the EU will cut demand for jet fuel from the Middle East region [which] will hurt our own refining margins at a time when we are expanding our capacity, in part to meet European demand.” At the same time, questions are being asked of the extent to which refineries in India (which will remain a GSP beneficiary) could step up to any increase in demand.  We could well end up in a situation where refined jet fuel from the Middle East regularly travels to Europe via an intermediary in the Far East, thus still qualifying for import tariff relief under the GSP – hardly the intended effect of the scheme and certainly not a supply-chain likely to bring down prices.  Another likely consequence is that, if jet fuel in Europe does end up being sold at a premium to that of the rest of the world, airlines will look wherever possible to refuel outside of the EU to reduce costs. In recent weeks there have been increasing noises coming out of the EU to suggest that the import tariff on jet fuel could be avoided altogether if the Gulf Cooperation Council States (Saudi Arabia, Kuwait, Bahrain, Qatar, UAE and Oman) reconsider engaging in bilateral trade negotiations with the EU, which have been on hold since 2007.  So depending on your opinion of the EU, this whole episode could be considered either as strong-arm tactics to boost trade with the Middle East (“come back to the table on the trade bilaterals or we will block your fuel imports”), or an EU oversight and failure to consider the actual implications of the GSP. If the planned changes do go ahead, a large amount of imported European kerosene will see price increases of 4.7% and for distributors that should be a worry. Not only is the legislation set to be applied in the midst of the heating oil season (Jan 2014), but for an industry already under pressure to prove its consumer value versus other methods of heating, a jump of circa 2.5ppl will not be welcome. “We could well end up in a situation where refined jet fuel from the Middle East regularly travels to Europe via an intermediary in the Far East”

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Phillips 66 appointment for growth

Phillips 66 has further strengthened its commitment to UK fuel sales, appointing Tony Reddington as national sales manager for its UK & Ireland marketing division. In his new role, Tony will be 100% customer-focused, targeting new customers and strengthening existing relationships with supermarkets and high volume resellers and dealers throughout the UK and Ireland. He will take responsibility for the development of the company’s speciality fuel businesses – marine, aviation and LPG. Since joining the company in 1987, Tony has held a number of roles across its upstream, downstream and corporate divisions, with a particular specialism in finance. Pete George, the company’s managing director UK & Ireland marketing, commented: “Tony has extensive experience of our business and our brand, as well as an in-depth understanding of the UK and Ireland’s fuel market. He is well-placed to take on the challenge of increasing our market share, identifying new opportunities and developing our customer base across all of our fuel products.” www.phillips66.co.uk

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Valero extends Wincanton contract

Valero has extended and expanded its partnership with Wincanton. The partnership, which has spanned almost 20 years, will now continue for at least another five years. Wincanton has also been awarded a new, five year contract to take over the scheduling and planning of its deliveries, including taking and managing customer orders. Under the new terms Wincanton will operate out of Valero’s network of UK terminals, transporting more than two billion litres of fuel a year for the business. The logistics provider will operate a 24/7 service on behalf of Valero, taking up to 600 customer orders a day before scheduling and planning delivery to more than 1,000 UK locations. Commenting on the announcement, Wincanton’s CEO, Eric Born, commented: “We are delighted to be expanding our relationship with Valero and are looking forward to finding further opportunities to develop new and innovative ways of adding value to our partnership. “Today’s announcement confirms Wincanton’s position as a market leader in the sector, with a proven capability to deliver value added services that are usually out of scope within a traditional fuels distribution model.”

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FPS – pricing and delivery guidelines

The Federation of Petroleum Suppliers (FPS) has produced a Code of Practice and Customer Charter in a bid to raise standards within the oil distribution industry. Since the 2011 Office of Fair Trading (OFT) investigation, the FPS and its members have worked closely with the OFT, Citizens Advice Bureau, Consumer Focus, Advisory Committee on Releases to the Environment and Department of Energy and Climate Change to form the new documents. Launched earlier this month, the Code of Practice is designed to ensure all members adhere to high standards and contribute towards the professionalism of the industry. Together with the Customer Charter, the new code should ensure that the best service is offered by FPS members and that customers are fully supported when ordering heating oil. Chief executive, Mark Askew, said: “The Code of Practice has taken time to implement but we have ensured that we have consulted with consumer groups so the consumer has their say as well as ensuring DECC and the OFT are happy with the proposed Code. “The FPS will act as guardians of standards for the oil distribution industry and through this Code of Practice we will set those standards and show we take them seriously. Having a Code of Practice in place for FPS members will give the public reassurance that they are dealing with companies who are adhering to best practice. “Every FPS member should offer clear pricing and delivery guidance to customers at the time of ordering, and the new charter explains all this. As well as providing information on the different ways to place an order, members should advise on matters such as the right to cancel and what to do when something goes wrong. We are doing everything we can to ensure the customer experience is a positive one.”

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Putting the Petroleum Driver Passport into practice

Brian Worrall, DODF chair and Marisa Ferguson, contracts manager, SQA, at the signing of the PDP agreement The UK’s first Petroleum Driver Passport (PDP) has moved a step closer to completion with hauliers and training providers being invited to gain approval to deliver the necessary training and assessment. Hauliers and training providers are now able to apply to Scottish Qualifications Authority (SQA) to become PDP approved centres, enabling them to carry out some or all of the required training and assessment. The scheme will be open for driver training from January 2014. During 2014 all drivers must be trained and pass the associated assessments before being issued with the PDP card. Terminals will begin mandating the scheme from January 2015. Training providers can register to undertake all activities, classroom and practical, on a five year and annual refresher basis whilst others may opt to conduct their own annual refresher, practical or classroom training. Some operators may choose to undertake the practical assessments for themselves and others, leaving the classroom elements to third party providers. Brian Worrall, Downstream Oil Distribution Forum (DODF) independent chair, said: “The implementation of the PDP is progressing well and we are inviting companies to register with SQA as training providers so that we are in a position to begin driver training in January 2014. By implementing PDP, the industry can have confidence that drivers have been trained to a consistently high, externally verified standard in all aspects of tanker driving, from pre-vehicle checks to loading, driving and discharging.” Secretary of state, Ed Davey added: “Government is supporting the PDP scheme which will improve standards and the quality of training across the industry. We would encourage all training providers to sign up to delivering this new qualification.” Sue Macfarlane, head of specialist awards and services at SQA, said: “We are delighted to be working with the DODF. I believe SQA’s considerable experience of developing, assessing and quality assuring qualifications relating to the transport of dangerous goods means we can be trusted by the industry to help demonstrate drivers’ skills and knowledge of relevant safety procedures to terminal operators, customers and the public.”

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Royal seal of approval for Fort Vale

The vice lord lieutenant of Lancashire presents Edward Fort OBE with the Queen’s Award for Enterprise:International Trade Fort Vale recently celebrated its fourth Queen’s Award for Enterprise: International Trade. Vice lord lieutenant of Lancashire, Colonel Alan Jolly, visited the company’s headquarters in Burnley to present the trophy on behalf of the Queen, to company founder and chairman, Edward Fort OBE. Edward Fort said: “I am extremely proud of our company and what we have all achieved together. Such an endorsement means that customers can be confident that they are dealing with the best in our field.” The company has just released a new video on YouTube, showcasing the company’s latest developments. In an interview Ian Wilson, the company’s managing director, explains the company’s philosophy on continual improvement and innovation. “We are a team of engineers and innovators and firmly believe that adapting to constant change is the only way to move the business forward. Our customers are demanding shorter and shorter lead times and it is only by having our own dedicated foundry that we can control the quality of components and the rate of supply to achieve these demands. “We have recently constructed a 1,000 m2 research and development unit together with a test facility which will enable Fort Vale to continue to improve and develop its product range and keep the business in its current position in the market.”

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New Maxol motor oil range

The new range Maxol Lubricants has unveiled a new motor oil range for the retail market. The range reflects the new look of the Maxol brand and introduces new labels and symbols to make it easier to choose the correct motor oil. The symbols on each product indicate whether the motor oil is for petrol or diesel engines, or both and that it meets European Automobile Manufacturers’ Association standards. The label also displays a list of vehicles for which use of the oil is recommended. At the beginning of the year Maxol unveiled a new brand and forecourt identity and the new range marks the company’s continued rejuvenation of the brand. Maxol Lubricants worked closely with leading brand consultants Neworld Associates to incorporate the aesthetics of the new retail forecourt brand in the motor oil range. Research showed that consumers were largely confused by technical data on traditional packaging and were averse to buying from forecourts where specialist advice was unavailable. Commenting on the new look motor oil range, general manager, Owen O’Neill commented: “We have always been known as the pioneers of the industry and believe that we have again set a new higher standard by being the first to introduce clear and simple labelling as part of our new look motor oil range. “Our primary focus was to make the purchasing process easier for consumers and we feel the non-technical language, new symbols and clever design achieve this. “This has been an exciting project and one which we feel will help Maxol to win new customers. It is also important that the Maxol Group’s new brand identity is adopted across all facets of the business to guarantee consistency for all stakeholders.” The new look range will be fully rolled out by the end of 2013.www.maxol.ie

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Essar’s literary genius

Andrew Bentley of Chester Performs with Ian Cotton of Essar Energy Stanlow-based Essar Oil UK is sponsoring The 2013 Essar Chester Literature Festival. The autumn festival, which is produced by city arts organisation, Chester Performs, will run from 13-27th October. Ian Cotton, Essar’s head of communications and community, said: “We are delighted to be sponsoring the festival for another year. The event has become an integral part of the city’s cultural calendar and this year, there really is something for everybody.” Festival manager, Paul Lavin, added: “We’re pleased to have Essar on board. We’ve developed a great relationship with the company, and through their continued support, we can ensure the festival continues to grow.” Among the authors starring at the festival are broadcaster, Clive James, comedian, Tim Vine, war correspondent, Kate Adie and actor, Sir Derek Jacobi. Other big names on the bill include BBC Radio 5 Live’s, Richard Bacon, Beatles historian, Mark Lewisohn and TV personality, Kate Humble.www.chesterliteraturefestival.co.uk

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Whitegate to avoid closure?

Greg Garland, chief executive of Phillips 66, has revealed that a number potential buyers have expressed interest in acquiring Ireland’s only refinery, possibly saving it from closure. “We do have people interested in Whitegate,” he said of the Cork-based plant which employs 200 staff. The refinery, which has operated in east Cork for nearly 55 years and supplies approximately a third of the country’s oil, requires extensive modernisation and closure looked likely if it was not sold. Michael Martin, Fianna Fail leader earlier this summer, commented: “The threat to its future has serious implications for Ireland’s energy supply and consequently for our economy.” Phillips 66 is pulling out of Ireland completely, selling its wholesale marketing business and a storage terminal in Bantry Bay.

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The shipping news

World Fuel Services barge Cap Mejean, bunkering the Seven Seas Voyager Like many other industries, shipping was a casualty of the economic downturn in 2008. Liz Boardman looks at how the distributors supplying the marine market were affected, how the industry has bounced back and concerns over new legislationA downturn in volume “The shipping industry was booming before the summer of 2008, but freight rates like the price of oil crashed,” explains Nikki Jessop the Rix Group’s director, Maritime Bunkering. “Following this, ship owners and operators resorted to slow steaming and bunkering at locations offshore on passage at lower levels to keep their costs under control. Marine fuel volumes and margins are down significantly and credit risk management is more important than ever.” Peter Hunt, who handles Falmouth marine sales for World Fuel Services, agrees. “We saw a peak in terms of volumes in 2007/8. Total UK bunkerage in 2007 was between 2.5-3 million tonnes; now it’s down to approximately 2.2 million tonnes.” World Fuel Services is one of the biggest suppliers of bunkers to the UK market. Its UK-based subsidiaries (Henty Oil, Falmouth Petroleum and Tramp Oil) supply over 750,000 metric tons of bunkers each year in UK ports (HSFO, LSFO and LSMGO). The company has storage and blending facilities at Immingham, Falmouth, Liverpool and Holyhead and a resident barge at Dover.Recovery “As with most UK industries, the marine fuel industry has not escaped the downturn unscathed,” says GB Oils’ marine national sales manager, Gary Byers. “However we have experienced an increase in demand for marine fuel oil throughout the UK due to factors such as increased brand awareness and establishment of close, trusting relationships between the company, international traders, ship owners and the UK and international government bodies.” Since it was formed some years ago, GB Oils’ marine division has become a key player in the industry and is continuing to grow. The company’s marine team is a trusted supplier to some of the UK’s main marine companies including the Royal National Lifeboat Institution and Ministry of Defence. The company is the only bunkering supplier able to distribute nationwide and is one of just a handful of companies permitted to supply fuel on the Thames. Another specialist service provided by GB Oils is the transportation of IFO grades from Eastham to every port in the UK, Northern and Southern Ireland, allowing the company to not only maintain business, but to continue to grow. The Rix group currently owns three coastal tankers plus three estuarial barges, all suitable to load from the major oil companies. The marine department charters three/four of the tankers for bunkering activities ECUK, whilst the other two are on charter to third parties. “The Humber, like most ports saw a significant reduction in bunker volumes by early 2009,” explains Nikki. During 2008 Maritime Bunkering operated two coastal tankers plus two estuarial barges. As a result of pressure from the major oil companies over age and vetting, the Rix group had already entered into a phase of new builds to maintain its market position. “We (Rix/Maritime Bunkering) have managed to keep our heads above water during challenging economic times through a conservative approach to the creditworthiness of our clients, securing product availability from our business partners and also investing a substantial amount of capital into our barge fleet, providing a good service.” In order to ensure that it maintains its barge fleet, Rix’s marine department also offers a barge hire service to other local suppliers, maintaining continuity to the area with regular barges.”Marine legislation From 1st January 2015, legislation will come in to force, further reducing the content of sulphur in marine fuel from 1% to 0.1%. “The use of low-sulphur fuels is a hot topic within the industry,” says Gary Byers. “The ECA regulations are designed to limit the harmful impact sulphur can have on the environment, but there is some debate on how effective this will be and the potential impact it could have on the marine industry. “Long-term, the regulations will have clear environmental benefits, however in the short-term, the treatment process required to convert fuel so that it contains 0.1% sulphur results in large scale carbon emissions, the impact of which negates the benefits of using a low-sulphur fuel. “There is concern that the ECA Directive may lead to increased bunkering costs, which could push cargo towards non-ECA zones, and also that there may be a rise in the use of alternative transport, including land, causing more congestion and emissions from those modes of transport, therefore counteracting the planned benefits of marine vessels using low sulphur fuels.” Nikki Jessop echoes these concerns; “It’s not known if sufficient 0.1% fuel oil will be readily available or if some ships will switch over to 0.1% MGO further increasing demand for MGO.” Melanie Noel, WP Group’s fuel sales manager agrees: “Legislation changes will only see more marine customers switching to gas oil 10ppm which will open the market up to more competition. It will also see increasing issues with fuel specification as FAME is present in most gas oil 10ppm and this causes microbial growth between fuel and water interface. This will in turn accelerate degradation in fuel quality causing efficiency problems.” WP Group purchases gas oil 10ppm direct from Esso’s Fawley refinery. Melanie explains: “Our fuel supplier, Esso, has taken the decision to produce gas oil with no added bio content by meeting its RTFO obligations elsewhere.  As a result, WP Group can guarantee to supply gas oil containing less than 1% biofuel.” On the positive side, Peter Hunt believes that the new legislation could be a good opportunity for Falmouth. “World Fuel Services expects Falmouth volumes to benefit from the reduction in maximum sulphur content for bunkers used in the European and USA/Canada ECAs when it comes into force. Ships approaching the European ECA from the Atlantic will not always be able to secure ‘ECA-compliant’ bunkers before entering; Falmouth’s location (just outside the western border of the ECA) makes it the last opportunity for ships to secure compliant fuel before entering the ECA.On the horizon “While there are areas of uncertainty, the marine industry continues to be a strong business sector with opportunities for expansion. Marine fuel suppliers such as GB Oils have a key role to play in supporting the industry and for us, the focus remains on helping our customers to comply with legislation and working hard to ensure their needs are met,” says Gary. —— HSFO – High Sulphur Fuel Oil LSFO – Low Sulphur Fuel Oil LSMGO – Low Sulphur Marine Gas Oil IFO – Intermediate Fuel Oil ECUK – East Coast UK ECA – Emission Control Area MGO – Marine Gas Oil FAME – Fatty Acid Methyl Ether

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Seeing it through at CDS

CDS managing director, Bill Lea (l) with product director, Paul Willis at the company’s Salford office Started in 1973 by a group of construction industry professionals and academics including Bill Lea, a building engineering graduate from the University of Liverpool, CDS Computer Design Systems celebrated its 40th birthday in January. Buying a mini computer, CDS set about producing software for architects and quantity surveyors. However, in 1974 a local fuel distributor’s request for a system to capture orders and produce delivery tickets was to introduce CDS to another software market. When Shell issued a specification for software to assist its 35 UK distributors, armed with the aforementioned experience, CDS put in its proposal. With the addition of programmer Dan Townsend – still on the team today – CDS competed alongside big names for what was a very substantial project; the contract to design a pilot scheme was won in 1975. Run with Pilot Fuels and Fuel Services Garstang, the pilot scheme was successful and rolled out to all Shell’s distributors by the late 70s. Bill explained: “We put everything together here – hardware and software – packed it up and put it in a van. I would then meet the van at the distributor’s office, install the equipment and ensure all was working before Shell started training. I got to see a lot of the UK.” By the end of the decade, CDS had 15 staff and contracts with Esso and BP followed.Creating, maintaining and developing the CODAS product Having garnered much information about the industry, CDS created its own CODAS product, putting in the first system for an independent distributor in 1982. “Although people knew of us, when we needed to get really serious about marketing, Rob Bowran, formerly with Shell, joined us. His marketing expertise and commercial nous really drove our marketing activity.” How CODAS looks and is developed is the responsibility of product director, Paul Willis who joined in September 1979. “In the 80s, every single system was different, indeed tailor made, with all maintenance done on site,” said Paul. “Now there’s a seamless system that works for everyone from just two to hundreds of users. Everything can be done in house whether it’s installing a complete system, loading a licence or providing monthly updates. “Substantial investment has created a product that stands out. With everyone used to systems like Windows, we follow leading standards to create intuitive systems that people of all ages and abilities can quickly get to grips with. We don’t reinvent wheels – we like to use existing pieces of software under licence where we can. We also pay attention to what’s below the surface so that in five year’s time, the distributor has a system that’s current. “We’re a team of technology-loving people who always want to learn about the next bright thing,” added Paul. CDS now has 36 staff, a quarter of who have 25 years service. The company’s graduate recruitment programme has seen six graduates join in recent years.Providing an aspirational business information system A modular system, CODAS enables distributors to enter orders, arrange delivery, send confirmation, update the sales ledger, generate invoices, produce statements and collect and process cash. It can also take care of RDCO and other legislative matters. Plus offer computer telephone integration and schedule and route vehicles. “We’re not the cheapest but we do set out to be the best,” said Bill. “CODAS is a great product with the scope to embrace everything today’s distributor – from the largest operator to the two-man business where dad still does the coal deliveries – needs. There’s nothing cheap about it and nothing that says you’re only a fuel distributor so this is good enough for you – our standards are aspirational.” When it comes to improving efficiency, more and more distributors are realising the value of technology. Making use of the fact that the exact location and amount of fuel on each of 10 tankers was known in real time, one distributor regularly rescheduled orders to ensure all customers were satisfied in the depths of last winter. Delighted by the efficiency improvements, the distributor told CDS that ‘everytime we buy something from you, we make money out of it.’ Paul is baffled by those who spend hundreds of thousands on trucks, but operate without technology. “I wonder if they know just how much margin is being made at any given time and exactly where it came from?” Today over 400 depots use CODAS. With a high level of dependence on the information generated, it is sometimes hard to get people to turn it off. “The level of stability we maintain for our customers is vital so upgrades are done in the evening and we’re always there to help at month end,” said Bill. “We’re committed to the fuel distribution industry, we won’t let our customers down and we’re honest about what can be achieved. We make mistakes like anyone else; sometimes a fault may not get attended to immediately but we can always be relied on to do everything it takes to see things through.”

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Designed for the industry by the industry

The Petroleum Driver Passport is an excellent example of what government says is industry itself taking responsibility for setting and monitoring standards says Brian Worrall Fuel Oil News spoke to Brian Worrall of the Downstream Oil Distribution Forum (DODF) which has been instrumental in driving forwards the new Petroleum Driver Passport (PDP) initiative The DODF works with BP, GB Oils, Greenergy and Murco, logistics companies – DHL, Hoyer, Norbert Dentressangle, Suckling, Suttons, Turners and Wincanton, the Unite and URTU unions, several trade associations including UKPIA, FPS, the Downstream Fuel Association and the Tank Storage Association plus government and regulatory bodies and Sector Skills Councils.What was the background to the Petroleum Driver Passport initiative? In 2011, the ACAS agreement between Unite and the major hauliers agreed that they would put together an industry body, the DODF, to act as a forum for health and safety issues within the industry. The PDP was born from the industry group that was put together, with all parties agreeing that the petroleum tanker driver sector needed a consistent level of training to a high standard across the whole industry. The DODF created the training standard that underpins the PDP and ensures no duplication with existing ADR training. Whilst there is a lot of good training practice in the industry already, there is no mechanism to ensure that the training standard is specified and adhered to, and this is what the PDP does.In addition to DODF, who was instrumental in setting up PDP? DECC was the government department that ACAS requested take the lead in re-establishing the DODF, which had existed some six years prior. DECC enlisted the help of the two Sector Skills Councils in the industry, Skills for Logistics (haulage) and Cogent (downstream petroleum) to make this happen. The DODF has subsequently appointed Scottish Qualifications Authority (SQA) to manage the scheme. SQA already manage the ADR programme in the UK.Is the industry receptive to another level of training? For most operators in the industry, who already operate to a high standard, this standard will not necessarily require any more than they currently do, though it would help to identify any gaps against the defined training standard. Operators who do not have these standards already in place will need to do so, and they will be able to turn to training providers as well as their own resources to make this happen. We have devised the PDP to fit in with existing industry training. The PDP is on a 5-year renewal cycle, aligned to the driver’s ADR renewal date, and the annual refresher element is aligned to JAUPT and driver CPC; training which has to happen anyway. Importantly for such a hands-on role, the PDP has both classroom and practical elements. This initiative is the result of wide industry consultation and the detail of the scheme has been put together with representatives right across the sector, from industry associations through haulage and distributor companies to unions and to tanker drivers. We have taken into account comments we have received as we have developed the scheme and so we are confident that we have pitched PDP for the industry.How much will it cost an operator? The costs are still being finalised – some of the cost is annual, some is incurred at the 5-year renewal point. To give some indication, the scheme costs will be in the region of £25 per driver per year. In addition to this, there may be training provider and/or assessor costs depending on how companies train and assess. For those who already train to the PDP standard, many of these costs will already be in the businessWhat are the key benefits of PDP? The PDP sets a benchmark training standard to which everyone in the industry will train. As it has a practical as well as a classroom element, and a 5-year renewal cycle with an annual refresher element, it works well with existing industry training. It has been designed for the industry by the industry. It gives terminal operators, in exercising their duty of care, confidence that they are allowing rack access only to drivers who are fully trained. Drivers can have a confidence that they are fully trained to do what is an important and complex job and hauliers and distributors can point to an externally verified standard to which they are training their drivers. As far as government is concerned, this is an excellent example of what ministers refer to as a “better regulation” where industry itself takes responsibility for setting and monitoring standards. It will give the whole petroleum tanker driver sector a confidence that training is taking place to an externally verified standard and the PDP will help maintain standards across all operators into the future.