Masters of Port and Maritime Management Practicum Proposal Table of Contents Item Page Introduction .. 3 Background of NPMC .. 3-4 Overview of NPMCs Operations .. 4 NPMCs Supply Chain .. 5 The Problem Identified .. 7 What is there were Major Interruptions to NPs Supply to the Local Market? .. 9 Next Steps-Responsibility, Assigning Ownership & Buy-In, Approvals .. 11 Literature Review-Dredging .. 12 Objectives of the Practicum Team .. 16 Research Methodology .. 17 References .. 20 INTRODUCTION Image 1.1 Courtesy NPMCs website Trinidad & Tobago National Petroleum Marketing Company Limited (NPMC) is located at the Port of Sea Lots. The Port has a private pier or jetty which operates as a sufferance wharf, for the purpose of discharging and loading petroleum products as cargo or bunkers. Marine access to the jetty is via the Marine Access Channel, which is the stretch of waterway that links the basin of the Port to the open sea. The access channel is characterized by its width, depth and alignment. BACKGROUND OF NPMC Owned by the Government of Trinidad and Tobago, Trinidad & Tobago National Petroleum Marketing Company Limited (NP) was incorporated in 1972. It was formed with the assets the Government purchased from the then BP Caribbean Ltd the local marketing arm of the British Petroleum Group. In 1973, the Government purchased 50% of the inland marketing assets of ESSO Standard Oil, vesting it in NP. In 1976, NP became the sole distributor of petroleum fuels in Trinidad & Tobago, having acquired the marketing assets of Trinidad and Tobago Oil Company (formerly Shell Trinidad Limited) and the following year the local marketing assets of Texaco Trinidad Limited. When NP acquired the assets of Shell Trinidad Limited, it inherited its Lubricant Blending Plant at Sea Lots, on the outskirts of Port-of-Spain. Under license, it continued to produce a range of lubricants, blended according to the Shell formulations, until the National Petroleum Brand of lubricants was launched in 1981. OVERVIEW OF NPMCS OPERATIONS NP Markets: Petroleum Fuels/White Oils Lubricating Oils and Greases Liquefied Petroleum Gas (LPG) Automotive Specialty Products At present NP no longer enjoys a monopoly in the service station network, however, the Company services 80% of the market share in Trinidad. In Tobago, NP services 100% of the entire island. Their Blending Plants produces Lubricating Oils, Greases, Brake Fluid and Radiator Coolants. They also deliver Marine bunkering and Aviation re-fuelling at their facilities in both Trinidad and Tobago and in Dominica. NPMCS SUPPLY CHAIN Image 1.2 NPMCs Supply Chain White Oils / Fuels (Clean Petroleum Products) Replenishment of fuels for both islands is done the by use of two ocean going chemical tankers which transports NPs cargo on a Time Charter arrangement to NPs tank farms at Sea Lots and Crown Point, Tobago. After leaving Petrotrins Refinery in Pointe a Pierre, the products are transported within the Gulf of Paria into the basin in Sea Lots (typical turnaround time is 24hrs including, berthing/unberthing, clearing customs (droughers license), loading, transit to and from load port/disport.) Product is then re-distributed inland to Service Stations, Government Ministries, Fishing Depots, Airport, Sea Port (Passenger Ferries), Exploration & Refining, Mining & Earth Moving, Power Generation, Sugar, Construction, Marine, Manufacturing, Petrochemical, Agriculture Sectors etc. via Road Tank Wagon. Lubricating Oils and Greases The Companys Blending Plants produces lubricating oils, greases, brake fluid and radiator coolants. The sale of these items accounts for approximately 30% of the local retail market and 40% of the medium to heavy industries. The oils that forms the base (base oils) of the lubricating oils and greases are imported in bulk form from Texas, USA this is done on a Space Charter basis via ocean going Chemical Tankers every 3-4 months, while the different additive packages that goes into blending the various grades are also sourced and imported from the USA. Liquefied Petroleum Gas (LPG) Petrotrin and Phoenix Park Gas Processors Limited refines Liquefied Petroleum Gas (LPG), replenishment of LPG to the facilities in Sea Lots (services Trinidad) is done via Road Tank Wagon (approx. 3000 bbls per day). Crown Point (services Tobago) is done on a Spot Charter basis of a LPG tanker every 5-6 weeks (approx. 7,400 bbls). THE PROBLEM IDENTIFIED Safety and navigability of the channel is critical to ensure safe movement of vessels and water crafts with the aids of marker buoys and beacons. Over the years, the siltation has reduced the channel draft from its original 7.0 metre depth. Image 1.3 Channel Marker No.4 (almost gone) The jetty at Sea Lots is 210m long. It once accommodated two vessels simultaneously, however, it can now only accommodate one vessel up to 120m LOA due to silting of the seabed around the jetty and the falling away of two of the four mooring dolphins (see Image 1.4, below). Daylight berthing/unberthing of vessels (0600hrs to 1800hrs) at high tide only, due to the non-maintenance of the navigational towers that acts as a lead line to guide the vessels safely into the channel to conduct berthing operations. Other visual aids also almost non-existent (refer to the channel marker above) also the non-replacement of batteries for the lamps on the dilapidated channel markers. Maximum arrival draft of 5m includes (u.k.c) Under Keel Clearance of 1m. Mandatory Pilotage. Vessels should have bow and stern thrusters. Vessels which do not frequent the channel must have both Pilot and Tug assistance. Image 1.4 Vessel alongside NPMCs jetty Sea Lots The marine pilots who direct the vessels along the channel to access the jetty has complained of loss of handling and other issues along the channel. NP engaged the services of Boskalis1 to conduct a bathymetric survey of the channel. The survey findings were as follows: The channel shows substantial siltation, with the deepest depths being between 5.0 and 5.5 metres along the centre line. Silt from the nearby river has resulted in pronounced narrowing of the channel. The main concerns: The changes in draft and width pose a serious navigational hazard to vessels and personnel. The operations of NP are impeded as vessels are limited in cargo quantities owing to the reduced draft and the restriction to utilize the channel at high tide only when loaded. NPMC was unable to obtain a Certificate of Environmental Clearance (CEC) for the disposal of the spoils. The Environmental Management Agency (EMA) advised that the levels of heavy metal (tributyltin2) detected in samples of the material to be dredged were too high and would require either an environmental impact assessment or a sediment remediation plan before they could remove the material. As we fast forward to the present day (2018), the situation remains the same or perhaps worst. NPMC is a state enterprise and as Governments come and go, so too does the mandates also come and go. If maintenance or capital works is not done, siltation will continue, resulting in even further narrowing of the channel and reduction of the draft. Ultimately, the channel will be rendered impassable by vessels. Marine access to alongside the jetty will be curtailed. WHAT IF THERE WERE MAJOR INTERRUPTIONS TO NPs SUPPLY TO THE LOCAL MARKET? Externally Shut downs at the Company can affect the motoring public adversely as the major competitor in the Service Station business is not equipped to service the fuelling requirements of the entire island of Trinidad. Tobago will be entirely cut off. Rural Communities will be cut off. Externally (contd) Aviation Customers will migrate. Marine Customers will migrate. Bad image recognition locally, regionally/internationally. Little or no demand for new business opportunities. Panic buying, riots. Internally Fall in sales and revenue during the period of disruption. Fall in cash flow. Drastic increase in sales during the period of recovery. Oversupply of product leading to a fall in sales and revenue once more. Loss of Foreign Currency (vessels on time charter still must be paid). Increase in employment costs (overtime and allowances) to get the situation back to normal. Possibility of incurring demurrage. It is imperative that the marine access channel and turning basin, be dredged, and navigational aids installed and maintained. The Sea Lots channel is strategically important to Trinidad as it provides a viable alternative distribution point for supplementing the supply of fuel and LPG to the market from local and foreign suppliers. It must also be noted that access by vessels to this channel is critical, not only to NPs operations but provides an alternative terminal facility for fuelling when the refinery (Petrotrin) is totally shut down. The estimated cost of dredging can be determined after conducting a detailed analysis of the following: Site conditions Easy entrance and exit of the area for the dredging equipment: will the dredging equipment be transported or can it sail to the dredge site? Are there any waves, tides and/or volatile currents? What is the draft of the water? Are there any issues with the climate? Are there any restrictions due to environmental conditions? The distance between disposal site and dredging area?[ CITATION Sta17 l 1033 ] NEXT STEPS RESPONSIBILITY, ASSIGNING OWNERSHIP & BUY-IN, APPROVALS NPMC needs to raise the issue at a Ministerial level for intervention. The objective is to have the PATT and/or the Drainage Division take responsibility for the maintenance of the channel and navigation aids. If the PATT is engaged in dredging, the same firm and dump site can be used, reducing the cost of mobilization. This is the preferred option. NPMCs core business does not include channel maintenance. The PATT and the Drainage Division regularly engage in this type of activity and may be able to secure more competitive pricing. Alternatively, NPMC can engage suitable companies to conduct a follow up bathymetric survey of the marine access channel for an updated estimated cost of dredging, and to survey the jetty and provide an estimated cost of refurbishment/replacement. Navigational aids would also have to be sourced. Once the total cost is determined, approach the Ministry of Energy and Energy Affairs for funding of the entire project. Simultaneously, NPMC has to engage the EMA for the acquisition of the relevant (CEC) Certificate of Environmental Clearance, to facilitate the disposal of the dredging spoils. This image taken from Google Maps 2018 LITERATURE REVIEW DREDGING The proposed Dredging project can be embarked on, using the following options: Capital Dredging The process of Dredging that is carried out in an identified location, and in physical material that has never been dredged, is suggested to as a capital project. The reclamation of land for airports that require platforms and non-natural islands, for new ports development, expanding and widening access of waterways / channels, berthing places, and turning basins are a perpetual necessity in order to meet the needs of growing trade and economy. Maintenance Dredging Maintenance dredging entails dredging to maintain or recuperate existing channels and watercourses, providing a number of years elapsed between sequential dredging campaigns. Once a dredging procedure has been accomplished, maintaining the site or Port is of huge importance to ensure that the original investment remains undamaged and functions as planned[ CITATION Int16 l 1033 ] The purpose of this paper is to increase the viability of National Petroleum by means of greater vessel access via, dredging to allow larger vessel to access the jetty, coupled with making the water courses safer and increasing navigability and mooring access the process will be defined as maintenance dredging and will encompass desilting, and reclamation. Why Dredging is necessary particularly for NP Sea Lots berthing facility, in the present context, it means the removal of sediments to create new or expand existing navigational Channels, berthing pockets and turning basin to establish new dredge design levels (DDLS). It involves the removal and relocation of natural material previously undisturbed seabed to increase water depths. Periodically Ports need to enhance or increase infrastructure capacity through dredging programmes by deepening and widening navigational channels, berthing pockets and turning basins. This is due to the increasing number of ships that trade at various ports, which has grown significantly due to the advent of larger ships that form an increasingly greater percentage of the global shipping fleet. Larger ships are used to achieve economies of scale that result in reduced shipping costs and hence cheaper trade. Let us explore the landscape as it is now we can see NP relying on smaller vessels, which would lead to additional import and export cost, consequently more shipping traffic that ultimately leads to an undersupply of suitable ships as smaller, older vessels are decommissioned. The use of older and smaller vessels will also potentially lead to poorer environmental performance due to increase shipping movements, increased noise, poorer emission controls and navigational risks (breakdowns, collisions and groundings). Failure to undertake maintenance dredging and provide new or deeper channels, swing basins and berths will result in lost trade opportunities and inefficient Port operations, with direct economic social costs to the business community which will negatively impact the national GDP. At present the Port at NP Sea Lots Facility has a restricted draft of 6.6 meter and a pier with an overall length of 210 meters. The propose dredging will see the channel extended by approximately five kilometres further out to sea and depth of the existing channel would be deepened by four meters to allowed ship of 14.5 meters draught to access the channel and safely use the turning basin, this would see the arrival of much larger vessels and translate into greater financial benefit base on economy of scale. At present, only ships not exceeding 12.4-meter draught can enter or leave the channel and only at high tide. This creates a landscape that is not attractive to ship owners, charterers and fuel cargo vessels primarily, because of the logistic hassles and unprofitable associated with inherent risk and safety issues, consequently the justification to modernize by international standards are very compelling to maintain competitiveness. Transport Traffic, Passage & Transportation infrastructure impacts from the Project will be considered in terms various forms of the activities which will be done in phases, specifically: Workforce/commuter traffic generated by the dredging activities and the Haulage of quarry material to the reclamation site. Taking into consideration the Dredging vessels, small craft, shipping and Port vessels during dredging. A number of influences can be predicted as it relates to: impacts on marine traffic and (b) land based impacts. Throughout and during the dredging operations a workforce of 15 30 people will be estimated. It is projected that a total workforce of 50 people will be used during the peak dredging phases whilst it is likely that two dredgers will be in operation simultaneously to ensure project completion in a timely manner without delays and cost over runs. Major significant impacts are not foreseen in relation to road intersections, of greatest importance is the haulage route, which is a dedicated haul route proposed in terms of potential marine transport and traffic impacts, it is noted that: Typically, minimal impact to current commercial shipping facilities & traffic is anticipated during maintenance dredging, given the location of the proposed reclamation at NPMC. None the less, prior to the commencement of dredging operations, it will be necessary to inform the Regional Harbour Master of the specifics of the works and the locations in which dredgers will be in operation for a maritime announcement to be made of the latitude and longitude of the said vessels. The conditions of contract for dredging works typically require that dredging contractors avoid any interruption to shipping movements within the Port, with this issue dealt with in the contractual process. When cutter suction dredgers (CSD) are being used, with a pipeline extending from the dredge to the reclamation, the option exists for the use of floating or sunken pipelines. Given the reduced restrictions for marine traffic, it is anticipated that Contractors may opt for a lower pipeline route. Health and Safety There remain possible risks to the safety and health of the workforce and society from the dredging and disposal activity including dust, noise and odour, mosquitos, and construction safety. A qualitative assessment of probable health and safety threats to personnel on site and the general public during the dredging and disposal activities, and appropriate HSE & HAZMAT programme will be implemented to minimize any biohazard risks to acceptable levels. OBJECTIVES OF THE PRACTICUM TEAM Based on the companys profile it is highly recommended by the practicum team, taking into consideration the recently expanded Panama Canal and the volatile shipping cycle, that dredging works be done as a suitable means to sustainable development. We are committed as a group to assist NPMC in achieving the following practicum team defined objectives by providing research, people on the ground and innovative solutions to get the desired results. To Create a safe upgraded channel from a navigational standpoint so that ships can maneuver and traverse the channel. Efficient moving and shifting of all vessels along with mooring competencies. To Create ease of sourcing and retaining vessels for reliability of supply of base and white oils which is core to the companys business. To Reduce the retaining cost for hiring of vessels. To create Environmental and safety techniques for handling dredge spoils (silt and waste) from the NP Sea Lots channel. To effect Cost efficient techniques to continuously maintain and treat the Sea Lots waterway and environs to prevent resilting. Bibliography Dredging.Com, Start. How to start a successful dredging project. 2017. https://www.startdredging.com/how-to-start-a-successful-dredging-project/ (accessed 2018). Companies, International Association Of Dredging. IADC Annual Report . 2016. https://www2.iadc-dredging.com/subject/concept-contract-completion/types-dredging-projects (accessed 2018). https://www.wsdot.wa.gov/research/reports/fullreports/507.1A.pdf. file:///C:/Users/user/Downloads/76055.pdf. Geology, Renard Centre of Marine. Renard Centre of Marine Geology. Els Verfaillie, Isabelle Du Four & Vera Van Lancker 12. Environmental Code of Practice Material Management . August 2016: 30. https://www.wsdot.wa.gov/re[ CITATION htt3 l 1033 ]search/reports/full reports/507.1A.pdf file:///C:/Users/user/Downloads/76055.pdf[ CITATION fil l 1033 ] [ CITATION Ren l 1033 ] 1 Royal Boskalis Westminster N.V. is Dutch Heavy lift and multipurpose Company that provides services relating to the construction and maintenance of maritime infrastructure internationally. 2 Tributyltin(TBT) is an umbrella term for a class of organotin compounds which contain the (C4H9)3Sn group, with a prominent example beingtributyltin oxide. For 40 years TBT was used as a biocide in anti-fouling paint, commonly known as bottom paint, applied to the hulls of ocean going vessels.
Masters of Port and Maritime Management
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