11 April 2017

PRESENT

Robin
Saunders:

CICCC /
Chairperson

Deborah Brown

Chief
Operations Officer, Terminals Pty Ltd

Ian Thomas:

Community
Rep./Committee

Don McKenzie

State
Manager, Terminals Pty Ltd

Faye Simpson

Community
Rep./Committee

Gary
O’Sullivan

Operations
Manager, Terminal Pty Ltd

Michael
Isaachsen:

Community
Rep./Committee

Susan
Chatterton

Minute Taker, Terminals Pty Ltd

Robin

Apologies – Deborah McFarlane, and Bro Sheffield-Brotherton.

Draft Agenda – confirmed

Deborah

Thank you for inviting me. 

(Distributed a booklet: ANTZ 2017 – Vision and Goals), which
gives an overview of the five Australian facilities (and the sites in
Newcastle and Pinkena Qld. where land is held for development) and the four
NZ sites.

I have been with the company now for 10 months and absolutely
loving being part of the company. 

Looking over strategic direction of Company.

David Bozinoski has since left the company and replaced with
interim CEO Stephen Grumley.

The key area of my position is managing the direction of the
company with the board.

Background history:-

·                 
15 years working with Qenos

·                 
Overseas for a while

·                 
Gold Mining

·                 
Sugar industry – CSR

·                 
Familiar with Terminals customers and issues

·                 
Asset Management

Our Vision:-

·                 
Operational excellence as business is
essentially product         transfer from
ship to tank to tanker

·                 
Manage the asset with Industry Best Practice

·                 
Switch to more fuel base materials

·                 
Manufacturing industry unfortunately on a
downturn

·                 
Geelong – fuel base ships

·                 
Fuel Terminals starting up in Botany

Robin

Are you saying this Terminal has a limited life?

Deb

Privatization of Melbourne is not good news from our point of
view.  Current lease expires in 2022.  Investing for a 20 year
window.  In Sydney we saw a huge increase in lease rates.  Market
review generated 300% increase.  We cannot pass those increases on to
customers and we are mindful of how much we can respond to customers wanting
a reduction in rates.

Michael

So that means Terminals would be losing business.

Deb

Terminals P/L is moving to fuels, small oils etc.

Ian

More favorable for Geelong for bigger ships?

Deb

Yes

Robin

Significant dredging conducted at Geelong.

Don

Bigger ships, deeper, wider.

Ian

Pelican Point is where?

Deb

South Australia

Ian

You took over a big company in Sydney?

Gary

VOPAK site which was the Powell Duffryn Ltd site here.

Michael

Heard about this but never presented to us in this way.

Deb

The information is on our website.

Auckland site is in an area where people could do bicycle track
around the terminal.  Our lease expires in 2025 and we will not be
renewing the lease. 

Michael

Footscray is a popular place for picnicking.  Event 21 years
ago put a stop to that and now community trying to reinstate again.

Deb

The report is an overview of how we run our business. 
Excited about a business that does want to grow.  Currently have 440
tanks across all our sites.  Looking at instrumentation.

Ian

Where are you based?

Deb

In Docklands.  My role is to look after all the Terminals we
have.

Robin

Tell us a little bit of your role, what’s in and what’s out.

Deb

Further to the key area of my position (managing the direction of
the company with the board, mentioned above in my opening statement), I
report to the CEO, and my key line responsibility is the line control of
operations. As part of the corporate team I’m involved in commercial, HR and
Health & Safety, and strategic aspects.

Robin

Does Stephen Lewis report to you?

Deb

No he doesn’t.  We work closely with each other.  He reports
to the CEO.

Ian

In relation to the proposed new road (the Transurban proposal for
a freeway extension from the West Gate Freeway at Williamstown Road which
deviates through Footscray to the docks and the city) what changes might that
make to the business or not?

Deb

Has that been approved yet?

Ian

Contract has been let to John Holland.  Which doesn’t mean
quote has been accepted.

Gary

When they finish the elevated road it will be better.

Ian

My problem is the proximity to the site.  The new road
proposed, including its ramps, crosses within the Outer Planning Advisory
|Area for Coode Island.

Gary

Still a good distance away from the Terminal

Deb

Good point to discuss at the next meeting.

ACTION ITEM

Robin to list an item in the Agenda for the next meeting (The
potential impact of the proposed Transurban freeway route through Footscray).

Robin

That route will be an immediate relief at the start but with land
use change and traffic growth will lead to further congestion in the
following years.

Faye

Why can’t we get rail in here?  Within 5 years everything
will be back to square again.

Don

Rails do not go to customer sites.

Robin

With respect to the Vision & Goals 2017, no mention is made of
the community.  On one hand for a number of years the site has become
less dangerous to the community and from that perspective I don’t have a
problem with it not being listed as key aspect.  However the CICCC acts
as a watchdog for the. The CICCC through its meetings and the record it
provides on its website provides a public record of the matters raised at its
meetings, and the response of the Company (which is generally very
positive). 

In February 2016 we raised that fact that Annual Reports for
2013-2014 (which Gary tabled previously, but has been confined to
environmental matters, and needs to be expanded to the same broader format as
the earlier reports), and 2015-2016 are missing.  I have understood staff
are very busy.  This is however a matter that needs attention. Within 4
months there will be 4 years missing.  Could you both (Deb and Don) use
your offices to put some pressure on Stephen on when he is going to action
his reporting responsibilities?

Deb

I always consider community as a large stake holder and apologize
for not having them acknowledged in reporting.  We need to be mindful of
reporting and will take that on board.

Don

Stephen does not have a free moment till July.

Deb

Responsibility is for us to report to many stakeholders and how we
manage that is important.

Robin

Might I suggest that in the light of Stephen’s busy schedule until
July, that he be requested to provide a schedule for the dates by which each
of the four outstanding annual Community reports (including the 2016-2017
which will be outstanding by July) will be completed and provided to the
Committee. I would note that Terminals responsibility for this is set out in its
Environment Improvement Plan.

ACTION

Deb to request Stephen to provide a schedule of the dates by which
each of the four outstanding annual Community reports will be completed and provided
to the Committee prior to the beginning of July

ACTION

Itemize for next meeting an Improvement Action Report for the 2013
-2016 EIP (current EIP). Confirm that the 2017-2020 EIP has not yet been
developed, and indicate when this will be addressed.

Michael

I would like to expand on rail transport.  It is not clear to
me how it could be done.  Intermodel Transport is rail, and I always
felt companies like Terminals would have an ambition for rail transport and
make efforts to put that on the agenda.

Deb

Transport of product is in by ship so the load on the roads is
reduced.  Transport by truck in incredibly expensive.  Because of
the bulk nature of the product.  Customers rely on a time
delivery.  If you complicate the logistics by rail you delay by a
week.  We have very short distances here as delivery.

Don

You would still have trucks either end.

Gary

Rail is more dangerous if there was an incident.  Confined,
too narrow an area, potential to spread to other carriages.

Michael

Just wish the company would think about it.

Deb

People try and bring in chemicals in containers in bladders.

Gary

Double stacking and crushing is an issue with bladder filled
containers.

Don

We have a duty of care but we do not organize transport. 
Economically it is not viable.

Gary

We do not have the rail infrastructure in place.

Robin

I would suggest that the Government’s major rail concern for the
port is getting the railway back into Web Dock.  Chances of rail back to
the Terminals facility would appear to be remote.

Don

Terminals do have rail provision at Pelican Point.

Summary

(In line with the suggestion by Deb, I am providing a summary of
the above issue, as follows below, and would seek any comment from the
Committee on its appropriateness.)

Considering all the contributions to the discussion, there seems
little value in pursuing this matter. Michael’s hope that the matter will be
given further consideration by the Company seems unrealistic, though his
general desire for the use of rail more widely in the port has considerable
merit.

Robin

Thank you Deb for your presentation which have led to some wide
discussion.

Deb

Unusual type of minute reporting.

Robin

The format of the minutes was adopted from the beginning of the
Committee to build trust between the Company and the Community
representatives, after the disaster in 1991. Early meetings were very
turbulent, and a complete record of community concerns and company responses
greatly assisted in improving trust (the responsiveness of the Company to
address the issues raised was also a key to the improvement of trust). Since
then the Community representatives have wanted the same approach to the
minutes to be continued. Where follow up of an issue is required, an Action
Item should be provided.

However, you make a good point about the value of clear summing up
of the various issues. I will give attention to this matter in my early
review of the draft minutes.

ACTION ITEM

Robin to include in his early review of the draft minutes the
matter of adequate summaries of discussion.

Ian

Concerning the April minutes, in reality we have 3 pages of
comments.  Simply the various reports and discussion on them.

Faye

Discussed previously that some of those comments of the incidents
might not be relevant to be made public.

Not in attendance – Nothing to report

Gary

Very good first quarter of thruput tonnage.

Deb

Means customers are being more successful.

Gary

Some of our refractory blankets on Combuster B have failed,
leading to hot spots on the outside. Following inspection we have done the
repairs.

Don

Undertaking installation of thermal imaging.  Two years in
the future, we will probably brick the chamber and the stack. (Note: this is
possibly an item for the new EIP).

Gary

Every water sample we have taken – no issues.

Don

Change in number of samplings.  We do it on every different
bund.

Robin

Look at how many are not compliant.  Need a different column
heading.  To the reader I believe it is easier to pick up the
non-compliant.  Environmental Monitoring, first column should be
confined to year.  Second column should give number of samples
taken.  Third column should be number of samples non-compliant. 
Fourth column – actions taken.

Faye

Where are the air samples being taken from?

Gary

Stacks – hydro carbon.  We organize for contractors to
come in during shipping.  Taken to laboratory for analysis then
reporting.

Don

Ingoing ship discharging makes the biggest load on the combustor.

Faye

Is there any perimeter testing carried out?

Gary

No.  Operators conduct tests by going around with a PID bi-annually
checking around seals on emergency vents and foam chambers,  and checking
for fugitive emissions.

Don

Daily Log – those doing the testing are required to report
each day.

Deb

Emissions are within the EPA license limits.  Combustor takes
all volatile products.

Gary

If there is a vapor leak we would be continually using nitrogen
and would be alerted there is a problem with that tank.  Tank
inspections are done monthly, and someone is in the vicinity of each tank every
day.

Ian

On the report it mentions TDI (page 6, where the Current Chemical
Storage Capacity is itemized), I thought you didn’t have it stored anymore?

Gary

Report shows tanks that could receive those products but may filled
with other products. In the case of the capacity for Toluene Di-isocyanate,
in fact these tanks are storing other product at present.

Robin

You are talking about the way the plant is set up to receive.

Don

For clarity take Toluene Di-isocyanate out of the Class 6 examples.

Ian

Massive argument for oxygen to be held for monomers.

Gary

Butyl Acrylate and Styrene Monomer.

Ian

What percentage?

Gary

There is a page on the Citect panel that monitors the
oxygen.  In vapor phase. 

Ian

Sensitizing problems with Toluene.

Faye

Intellectual problems associated with Toluene.

Ian

Fact that you still store acrylates without receiving neighbors
complaining of odor says a very good story.

Faye

Is any of your equipment coming from China?

Gary

Yes.  Most of the valves are manufactured overseas. 
Valves now better than what we were getting 20 year ago.  Good service
out of them.  They are an improvement on what we have had in the past.

Don

We do not test vales we buy; we buy with a test certificate.

Faye

In Maintenance System now it is computerized, you would see any repetitive
failure.

Don

Yes. At the moment we are using DP cells.  Moved a long way
forward – tank alarm levels, set standards for radars.  Fixed
probe plus radar.

Faye

All going to be fed into computer program.

Michael

Is that the same radar that gives a numerical output?

Don

Yes

Michael

I could certainly smell odour’s from neighbouring facilities at my
home.

Gary

Methanol Acrylate is only brought in by containers now.

Michael

My comment was commenting on how strong the odor was 1 km away.

Incidents

Don

Explained the format of the reporting of incidents from the
Integrum system. There is both a two line summary of the incidents, and then
up to four pages devoted to each incident.

Don advised that they have a new potential customer.

Ian

When you run a Hazop can community members be invited?

Don

Yes

Faye

How do you clean carbon beds?

Don

We purge steam though the beds and the condensate fallout from the
beds due to the heating process is disposed though the waste management
system.

Gary

Then explained the history of carbon beds.

IRF-0317-0184

Ethanol compartment off spec. due to odour.  Exercise
completed 6 times, potential contamination from the ethanol coupling being
attached to the drain stand directly.

Robin

It is desirable to capture the  “Type” column in old system
(Don pointed out the information was on the summary).  No management action
here on report.

Don

I can give you more information. A new procedure and equipment is
the outcome action. 

Robin

It is important to have the Management action  noted, and if
the incident is still being investigated, a note to this effect.

IRF-0317-0048

Marine Surveyor had a caustic splash causing a burn to the side of
his face while taking a sample in windy conditions. His face was washed with water
and dressed.  There was no indication of burning.

Faye

Chemical burns can be caused by acid types.  What sort of Gel
was placed on his face?  Wondering if you use vinegar based gel.

Ian

Caustic on you is slippery like soap.  Most use acid. 
Can wash but does not get it off.  Safer than any other weak acid such
as vinegar.  We need to comment on use of acid in comments.

IRF-0317-0013

Oil spill at wharf.

This incident was listed in the summary, but the detail was not
provided in the report.

Gary

Explained incident.  Multiple parcels – oil stain, film
or sheen on berth under Jetty.  Reported to operators by Port operators
believed it was not their responsibility.  From Terminals perspective
felt it did come from Terminals.  If we had of placed Kitty Litter
immediately on the wharf, spill would not have been an issue.  Cleaned
up spill and washed berth down.  Small quantity spilled from hose on concrete. 
Port disappointed at Terminals lack of action.

The issue has been addressed, and a review has been conducted on
hoses used on the wharf. The outcome was that only shorter hoses will be used
on the wharf in future. They will be easier to use and maintain. On the
relatively rare occasions that a longer hose is required, a short length of
clean hose stored permanently on the wharf will be coupled to the shorter
hose.

IRF-0217-0011

Pygas Ship.

Fifteen minutes into discharge had high LEL alarm. The maximum
pressure allowable is 35kPa, while the maximum concentration is below
2%.  Shipment was 8.5%.  We trickle fed the ship and managed
vapors. A Risk Assessment was conducted.  Balanced loading rate. 
Our tank level of Oxygen reached just below 8% and we had to get down to
5%.  The incident was a learning curve for all involved.

Michael

So I did not understand everything.  Incident that had not
been detected could have turned into an incident?

Gary

Between when high LEL is identified it sends off to carbon beds.

Michael

Worst outcome would be a delay.

Deb

Undertaking a review of the incident.

ACTION ITEM

Gary to report the review findings and management action in the
incident report for the next meeting.

IRF-0217-0025 and IRF-0217-0027

Riverside fire Pumps.  Filled with water – Push button
break fire alarm.  CFA call out twice.  Contractor investigation
found water in relays.

IRF-0217-0018

Wear and tear on Elastomer on seal faces on the pump

Don

All of our Caustic pumps have a stainless steel shield.

Robin

How much is leaking?

Gary

About a tenth of a litre.

Robin

Has a spill volume been recorded against this incident? What we
have had recorded in the past is the volume spilt, and this has been lost in
the new reporting.

Don

Explained rating.  In the text of the document it details the
volume of loss of containment.

Robin

Just drawing attention that the actual volume was information the
committee was pleased to see.

Deb

A half-litre that was leaked and not contained is far more serious
than 30 litres contained.  Severity is going to indicate potential of
spill.

Robin

I do not have a detailed specification of the severity reporting system
that sets out the limits of volume spilt (contained or uncontained) for the
various categories.

Don

Will send severity reporting in email.

ACTION ITEM

Don to send out the page that defines the spill volumes for the
severity classes for incidents.

Ian

Need to tell us the amount spilt.  Volume relevant and
whether it was uncontained is also relevant.

Faye

Severity goes from 1 to 5?

Deb

Yes

Robin

Summarize new reporting:-

·        
Obviously heading in right direction but we have
trouble  following format.

·        
Do without summary, with the information in
the summary added to the detailed report for each incident.

·        
The present system has a report format that is
not able to display all the relevant information succinctly on one page.

Deb

We are evolving the reporting too.

Robin

·           
The new reporting was welcome

·           
Information presented confusion matching up
summary with detail

·           
Would like these combined including Management
actions

·           
Include volumes 

·           
Only report the incident Terminals feel the
committee should spend time looking at. 

·           
The other incidents in summary page at the end
of the other ones dealt with more fully.

Robin

How is an incident assigned to a particular officer?

Gary

Whoever initiates the incident puts themselves down as Manager.

Robin

Why were they assigned to Don instead of Gary?

Gary

Management component is only those that initiate incident.

Robin

Final comment.  The Terminals Report contains a lot of
information to throw at us at meeting.  The Committee’s response would
be more considered if the report was circulated a few days before the
meeting. Such an approach is normal practice for most committees.

Gary

I will aim to do that.

Don

Sue send out meeting request.  Will send Robin a draft of the
new look reporting.

ACTION ITEM

Don will take into account the comments above, and devise a new
reporting structure for incidents. He will send this to Robin a couple of
weeks before the next meeting.

ACTION  ITEM

Gary will send the Terminals report to Robin not later than the
Thursday before a meeting, so that it can be circulated to the members for
their consideration before the meeting.

Ian

All businesses in the outer planning area must seek a planning
permit for new developments.  They are required to carry out Risk
Assessment and Emergency Planning.

The issue here is situations where the road or tunnel comes up
over land that is proposed for new development.  Such developments would
have to include the new road in the risk assessment. How does this affect the
Terminals facility?

Major Hazard Facilities advisory Committee issued their report. 
I understand WorkSafe are moving in  the direction of an overlay.

Robin

This issue of the Whole of Victoria being based on the UK version. 
The Victorian system never having been upgraded.  Preliminary findings
have not addressed the report.  Can you find out and let me know Ian?

Ian

Someone here to be designated to review the report.  Also
look at the impact of the new road.

Deb

We will review the MHF report and look at the impact of the road.

Ian

185 metres pre Bunsfield

400 metres post Bunsfield.

Robin

Did it change again when they reviewed?

Ian

300 metres for here.  Also introduced a different
thing.  Outer planning advisory area 500 metres at Coode Island.

Deb

We will review document and put summary together.

Don

Document is a done deal.

Robin

Further to the Action Item at the top of page 3 above, the
discussion above should be taken into account.

ACTION ITEM

Robin to amalgamate the Action Item at the top of page 3 above
with the advice from Deb that Terminals will review the document and put a
summary together, so that it reads:

Deb will investigate the potential impact of the proposed
Transurban freeway route on Terminals QRA and summarise its finding for the
Committee. Robin to list an item in the Agenda for the next meeting

No further business.

Next meeting Tuesday, 25^th July, 2017 on site at Coode
Island at 3:00pm.