< PreviousCASE STUDY | BEUMER GROUP 40MARCH 2020 | LOGISTICS MIDDLE EASTwww.logisticsmiddleeast.com of its kind in Asia for many years. It is operated by Asean Bintulu Fertilizer Sdn Bhd, a subsidiary of Petronas Chemi- cals Group Berhad (PCG). PCG is one of the largest manufacturers of chemical products in Southeast Asia and the leading producer in Malaysia. Twenty-five com- panies are part of the group, offering a wide range of chem- ical products, such as olefins, polymers, methanol and fer- tilisers, which are urea-based - for example. Their customers are based in about 30 different countries. The most impor- tant markets include Malay- sia, China, India, Thailand, Indonesia, Japan, South Ko- rea, Taiwan, the Philippines, Vietnam, Singapore, Australia and New Zealand. To meet the growing de- mand for urea, Asean Bintulu had to increase the capacity of its export facilities. BEUMER Group was awarded with the contract as a general contrac- tor, and in a consortium with the PBJV Group Sdn Bhd from Malaysia, who took over the assembly of the system. BEUMER Group supplies ship loading system for urea fertilisers to Malaysia PERFECT TIMING Since the 1980s, Asean Bintulu Fertilizer (ABF), a subsidiary of a leading Chemical manufac- turer in Southeast Asia, Petronas Chemicals Group Berhad, has a production location for carbamide fertiliser (urea) in the Malaysian coastal city of Bintulu (Sarawak) on the island of Borneo. To meet growing demands, BEUMER Group was contracted to modernise and increase the performance of the plant between the longitudinal stockyard and the ship loading system. The scheduling was designed to be very streamlined. Carbamide, also known as urea, is currently the most widely used nitrogen fertiliser in agricultural industries world-wide, mainly due to its comparably low costs. The demand is con- tinuously increasing due to our growing global population. The manufacturing plant in the coastal town of Bintulu on the Malaysian island of Borneo has been one of the biggest P h o to c re d it s: B E U M E R G ro u p G m b H & C o . KG The new system loads the urea fertiliser fast and reliably onto ships in the port of Bintulu. BEUMER GROUP | CASE STUDY 41LOGISTICS MIDDLE EAST | MARCH 2020www.logisticsmiddleeast.com monitor and control the system, the adjustment of the motor control units, a substation, a transfer sta- tion with a capacity of 1,000 t/h and a screening station, the most critical element in the schedule. The system supplier installed a solution with a capacity of 2 x 500 t/h. “We had to disassem- ble the existing screening station down to the main supports of the building and provide it with entirely new technology.” The transfer station divides the material flow towards ship loading and truck loading. This allows the customer to load either ships or trucks or both at the same time. The assem- bly of the portal reclaimer and ship loader was less time-critical, because the team could start working on it already prior to the 55-day shutdown, before the production plant was closed down. The assembly of the portal reclaimer in the longi- tudinal stockpile offered an entirely different challenge. The low ceiling height made it impossible for BEUMER to assemble the reclaimer on the floor and then set it up, as they usually do, so the system supplier had to find another solution: The system supplier had to assemble it segment by segment, which was both challenging and time consuming. BEUMER and PBJV were up for the challenge, and, in close cooperation, developed installation drawings and procedures for each work package, in compliance with the strict safety requirements of all parties involved. Adapted to performance requirements The portal reclaimer traverses the longitudinal stockpile with the urea fertiliser, removes the bulk material in layers from the side slopes and transports it through a primary crusher to a belt conveyor at a capacity of 600 t/h. The The service provider from Malaysia is responsible for the transport and installa- tion of onshore and offshore pipelines, in addition to other activities. The company also equips ships for their jobs in the oil and gas industries. Compelling engineering and time management “This order was a brownfield project,” explained Heinrich Beintmann, senior project manager at BEUMER Group. “This means that we had to integrate our new systems into the existing ones in a way that ensured that the material f low from the lon- gitudinal stockyard to the ship was not interrupted. Another requirement was that the al- ready available hardware and software components from third-party suppliers needed to be updated to match the increased performance. The maintenance of the entire sys- tem will become a lot easier thanks to this modernisation, because all components are on the same technical standard.” BEUMER Group, in co- operation with PBJV Group, developed a technical solu- tion which they presented to ABF together with a sched- ule that met all the required milestones. Asean Bintulu Fertilizer was convinced by the system providers hard work over the course of the proposal phase. AFB’s production location is running 24/7. “To minimise the down- time, we had only 55 days scheduled to complete the entire integration, which was quite a challenge,” admitted Beintman. “BEUMER Group took over project management and engineering, supplied all the systems and supervised installation and commission- ing. The scope of supply in- cluded a portal reclaimer for 600 t/h, the ship loader for 1,000 t/h, a fully automatic tripper conveyor for filling the longitudinal stockpile, a mimic panel to comfortably TO MINIMISE THE DOWNTIME, WE HAD ONLY 55 DAYS SCHEDULED TO COMPLETE THE ENTIRE INTEGRATION, WHICH WAS QUITE A CHALLENGE.” HEINRICH BEINTMANN, SENIOR PROJECT MANAGER AT BEUMER GROUP The portal reclaimer removes the bulk material in layers from the side slopes and transports it through a primary crusher to a belt conveyor at a capacity of 600 t/h.CASE STUDY | BEUMER GROUP 42MARCH 2020 | LOGISTICS MIDDLE EASTwww.logisticsmiddleeast.com The new system is in operation 24/7 hours at the port. you want all systems used by the customer to run seamlessly with each other, BEUMER con- tinuously develops not only its own products further, but its Customer Support takes care of upgrading mechanical and control technology manufac- tured by third-parties. Our customers are incredibly sat- isfied with our modification concepts, because our goal is to keep already existing struc- tures as much as possible.” This helps companies to reduce their costs, by reduc- ing the number of necessary components and ensuring fast return on investment. Adding shorter installation and handover times was also particularly important with this project. Efficient ship loading Belt conveyors transport the urea over the screening and transfer stations to the new ship loader, also supplied by BEUMER Group. The mobile and swivel-mounted ship load- er has a telescopic chute and a throw-off belt conveyor to make loading as efficient and flexible as possible. “With this system, our cus- tomer can now load ships with 1,000 t/h,” noted Beintmann. Petronas and Asean Bintulu Fertilizer are completely sat- isfied with the solutions, the progression of the project and the work of the BEUMER and PBJV consortium. “Our part aligned perfectly with the milestones of the en- tire project,” said BEUMER’s Beintmann. “And the coopera- tion between the PBJV Group has been exemplary.” The for the ship loader took less than three weeks, the entire system was com- pletely commissioned after eight weeks and handed over to the operator. portal reclaimer is fully automated. An existing side reclaimer adds another 400 t/h from a second longitudinal stockpile into the system. “The existing belt conveyor systems were not designed for the higher performance of our new portal reclaimer,” said Otto Schmelzer, engineering manager at BEUMER Group. “Which meant that we had to upgrade the drive stations that were already there. Not a problem for the system supplier. Because HANDLING CARGO | SPECIAL REPORT 43LOGISTICS MIDDLE EAST | JANUARY 2020www.logisticsmiddleeast.com CORPORATE SOCIAL RESPONSIBILITY SPECIAL REPORT: WHAT DOES IT MEAN TO YOU? NEWS [45] COMMENT: ZEBRA TECHNOLOGIES [46] FEATURE: WHAT IS CSR IN LOGISTICS? [48]SPECIAL REPORT | EDITOR’S INTRO 44MARCH 2020 | LOGISTICS MIDDLE EASTwww.logisticsmiddleeast.com MAKING CSR CENTRAL TO YOUR BUSINESS Corporate social responsibility is part of navigating a path to a zero-emissions future for the logistics and supply chain industries A zero-emissions fu- ture is the goal for the logistics and sup- ply chain industries, but many sectors are still reliant on fossil fuels, high energy usages, and tonnes of packaging. While CSR encompasses everything from supporting teachers, helping school kids from low-income families, to distributing vaccinations to remote parts of Ghana, and trans- porting Coronavirus samples safely, it is the CSR programmes focussed on helping the environment, which will have the largest impact on how these sectors operate. Already we are seeing strides across the transport industry. In shipping, vessels are swapping to LNG powered engines, reducing CO2 emissions and other pollutants. Wärtsilä, a global leader in sustainability solutions is just testing its LPG Fuel Supply System - the first ever to undergo engine testing. In the small delivery sector, electric motor- bikes and delivery vehicles are already on the roads, dramatically reducing CO2 emissions. Most logistics and supply chain com- panies have a goal to reduce emissions, the difficult task is how to do it without compromising service quality. UPS aims to reduce its emissions by 12% on an absolute basis across its global ground operations by 2025, according to Crystal Lassiter, UPS senior director of Global Sustainability and Environ- mental Affairs. That means that, even as its business grows, its emissions must decrease – during a time of booming e-commerce growth that is driving facility and fleet expansion across its business. “To reach this goal, we’re accelerating our use of renewable energy, including the largest purchase ever of renewable natural gas (RNG) in the US. Using 170 million gallon equivalents of RNG to fuel our fleet will help reduce emissions by The logistics and supply chain industries are trying to clean up their act. more than 1 million metric tons through 2026 – the equivalent of planting 17 mil- lion trees or removing 228,000 cars from the road,” said Lassiter. Similar initiatives are being rolled out across the supply chain in an attempt to reduce greenhouse gases, improve ef- ficiency, and save the world from global warming. But, is it too late? Photo by l e wis pr att on UnsplashCSR | NEWS 45LOGISTICS MIDDLE EAST | MARCH 2020www.logisticsmiddleeast.com The company is leveraging its global network to assist in the crisis With support from The UPS Foundation, Gavi, and other partners, Zipline drones will serve up to 2,000 health facilities and 12 million people in Ghana FedEx Corp is committing transportation and logis- tics support to humanitar- ian relief agencies as they respond to the coronavirus outbreak. As part of these ef- forts, FedEx Express will ship more than 200,000 surgical masks and personal protec- tive equipment such as gowns and gloves to its Asia Paci c Hub in Guangzhou, China to assist the humanitarian work of Direct Relief. FedEx is working closely with China Post which will deliver the aid from Guangzhou to Wuhan Union Hospital. “Direct Relief is deeply thank- ful to FedEx for enabling this rapid response to fulfil a very specific order that the medical staff in Wuhan’s largest hospi- tal selected from our current stockpile,” said Thomas Tighe, Direct Relief President & CEO. “In rapidly unfolding situations yun Airport Customs as well as the China Post on these relief shipments to swiftly complete clearance and get the critical supplies to Wuhan. China Post is coordinating the movement of the supplies into Wuhan to deliver the relief as quickly as possible. FedEx Pledges transportation support to Aid in Cor- onavirus emergency such as this, it’s obviously im- portant to move fast but with precision and proper coordi- nation with all the relevant authorities – which FedEx’s extraordinary team has made possible.” This collaboration is part of the FedEx Cares “Deliver- ing for Good” initiative. The company uses its expertise in shipping and logistics to con- nect organisations, communi- ties and individuals with the resources they need through charitable shipping and cash donations. FedEx is working closely with Guangzhou Bai- The UPS Foundation supports Ghana’s launch of the world’s largest vaccine drone delivery network The UPS Foundation, which leads the global citizenship programs for UPS, and Gavi, the Vaccine Alliance, have announced support for the expansion of a medical drone network into Ghana. Zipline, a California-based automated logistics company, will use drones to make on-demand, emergency deliveries of 148 high priority products includ- ing emergency and routine vaccines, blood products and life-saving medications. The service will operate 24 hours a day, seven days a week, from four distribution cen- tres—each equipped with 30 drones—and deliver to over 2,000 health facilities serv- ing 12 million people across the country. The partnership between the Government of Rwanda and Zipline, supported by phil- anthropic grants and in-kind support from The UPS Founda- tion and Gavi, pioneered just- in-time drone delivery of blood products to hard-to-reach clin- ics in Rwanda. The Government of Ghana is building on that success with expanded Zipline services, sup- ported again by Gavi and the UPS Foundation and joined this time by the Gates Foundation and Pfizer. The Zipline drone network will be integrated into the national healthcare sup- ply chain in Ghana and will help prevent vaccine stockouts in health facilities as well as during Ghana’s national im- munisation campaigns. FedEx pledges to provide transport and logistics to humanitarian relief agencies for the ght against the Coronavirus. Medical drone network expansion in Ghana.46MARCH 2020 | LOGISTICS MIDDLE EASTwww.logisticsmiddleeast.com There’s a popular saying, ‘waste not, want not’ but in the current climate where we as consumers can get anything we want at any time, what does that say about our waste— want much, waste much? The problem with plastics and packaging According to the US Environmental Protection Agency, about 23% of landfill waste is from containers and packag- ing. Plastics, while an economical and convenient material, are slow to decompose; they’re killing our marine life; and their toxins creep right back into the human food chain. People have quite rightly become more seriously con- Reduce, reuse and retail: Rethinking plastic and packaging Got something to say? If you have any industry comments to make please e-mail: georgina.ford@os.itp.com OPINION | HOZEFA SAYLAWALA Zebra technologies’ Middle East director, Hozefa Saylawala, looks at packaging and the cost to the environment COMMENT cerned with environmen- tal issues and the damag- ing effects of so much waste caused by our habits as con- sumers. Legislation is now increasing around the world. The US has introduced bans and fees on plastic bags spe- cifically. And in the EU, the European Parliament voted in favour of reducing plas- tics waste by 2025, with a target on single-use plas- tics and containers—things like straws, cutlery, burger boxes. With these stricter regulations, retailers are forced to reevaluate pack- aging choices and finding ways to go green. Online shopping and pre- packaged food are major waste offenders. Before e- commerce, traditional logis- tics involved bulk shipping to a warehouse or store. But now, with options for same- day and two-day shipping, more and more individual items are being packaged for delivery. Fast Company reported approximately 165 billion packages are shipped in the US annually. That’s roughly more than one bil- lion trees. And it’s not un- common to see an individu- ally wrapped cucumber or a clamshell package of cherry tomatoes when grocery shopping. While this makes shopping more convenient for consumers—and provides a way for retailers and vendors to easily track inventory—it isn’t exactly in line with the goals to reduce waste. Hence, the rise of zero- waste stores and package- free products. The challenges retailers face regarding package- free products Eliminating prepackaged food and implementing re- usable packaging solutions could be a $10+ billion in- novation opportunity, ac- cording to The Ellen Mac- Arthur Foundation. But no packaging also means no ex- tended shelf-life. And food still needs to be shipped in bags and boxes for pro- tection. Vendors also still need to have insight into product freshness. Without packaging to protect, track and monitor inventory, re- tailers will have a difficult time complying with prod- uct safety standards, recalls and policies and regulations specific to bulk sales. Bulk- style bins and dispensers where consumers can buy the amount they need are a popular solution for zero- waste stores. They’ve been received well in the EU es- pecially, with more than 100 FAST COMPANY REPORTED APPROXIMATELY 165 BILLION PACKAGES ARE SHIPPED IN THE US ANNUALLY. THAT’S ROUGHLY MORE THAN ONE BILLION TREES. AND IT’S NOT UNCOMMON TO SEE AN INDIVIDUALLY WRAPPED CUCUMBER OR A CLAMSHELL PACKAGE OF CHERRY TOMATOES WHEN GROCERY SHOPPING.”47LOGISTICS MIDDLE EAST | MARCH 2020www.logisticsmiddleeast.com OPINION | HOZEFA SAYLAWALA shops opening across the UK over the past two years. The support of the new EU-wide rules may have a leading role in the general success. But, zero-waste stores are also still in the early stages—with most in pilot phase in the US, where bans and fees related to plastic use are on a state- by-state basis. The lack of business cases is a serious deterrent for vendors and retailers. H o w to tr ack and trace package-free and deposit products Despite the challenges re- tailers face, there are oppor- tunities to benefit by moving toward a zero-waste model. The advanced technology solutions that are available to retailers today can give businesses more insight into user preferences while enabling them to deliver a unique user experience. Market Research Future reported the global smart packaging market is about $46.74 billion, with a CAGR of 5.16% from 2017 through 2023. Smart packaging uses sensors or smart labels to monitor product quality, storage conditions, freshness and shelf-life. And RFID-based packaging can trace origin and whether any contamination or tampering occurred. Online retail orders can be shipped in reusable packaging or crates integrated with a tracking system. The tracking system can pair with a mobile app to gather valuable customer insights. And with RFID chips installed in products and smart return stations, tracing when and where a user returns a product becomes simple. On the user-end, the app provides an overview of the closest drop-off location, any acquired credits and envi- ronmental savings to maintain user engagement levels. With smart-powered packaging, all participants across the supply chain get the real-time data they need about products, enabling full control over the flow of packaging and materials—improving supply chain efficiency and operational convenience. Hozefa Saylawala, Middle East director, Zebra Technologies THERE ARE FOUR RE-USE MODELS IN TERMS OF PACKAGING • REFILL AT HOME. Users have a reusable container, and the company delivers re lls to users through a subscription service. • REFILL ON THE GO. Users have a reusable container they re ll at a dispensing location. • RETURN FROM HOME. Reusable packaging is delivered to and picked up from users through a service. • RETURN ON THE GO. Users return reusable packaging to a drop-off/ deposit location. Each of these models has their own challenges, speci cally in terms of traceability and motivating customers to buy in to the zero-waste culture. Though many countries operate reverse vending solutions giving money back on bottles, this is a process the UK left behind many years ago. Perhaps it is time to resurrect this.FEATURE | CSR 48MARCH 2020 | LOGISTICS MIDDLE EASTwww.logisticsmiddleeast.com Transport and supply chain companies are doing amazing things in the CSR space. WHAT IS CSR IS LOGISTICS? Logistics Middle East looks at what the definition of CSR is and how it benefits your company Amazon mobilised its entire logistics network in Australia to deliver relief, and provided Amazon customers an easy way to send items to Australian charities from their Amazon online shopping accounts. But, what is CSR? It is best to start with a clear definition of what Corporate Social Responsibility is. According to several sources, CSR In the ever more connected world, corporate social re- sponsibility (CSR) has become a buzzword in the logistics and supply chain industries. Companies such as FedEx, UPS, Virgin, and more have made no- table impacts on the global community with CSR campaigns that really make a difference. One such campaign is FedEx Cares 50 by 50, the company’s drive to positively impact 50 million people around the world by its 50th anniversary in 2023, and Virgin Atlan- tic’s Change for Children programme which has raised over US$8.2 million for children around the world. While the Australian bushfires raged, it was the supply chain and logistics compa- nies that moved humanitarian aid, and veterinary support across the 12.35 mil- lion burning acres of the vast continent. Photo by Victória Kubiaki on UnsplashCSR | FEATURE 49LOGISTICS MIDDLE EAST | MARCH 2020www.logisticsmiddleeast.com MAIN AREAS OF SOCIAL RESPONSI- BILITY IN SUPPLY CHAINS INCLUDE: • Organisational practices • Ethical practices • Environmental practices • Practices of human rights and work- ing conditions • Practices of occupational health and safety • Practices to establish relationship with society UPS delivering humanitarian aid. What can CSR do for you? Companies have realised the crucial importance of the environment, started to adapt to the more environmentally concerned world, and begun to change their ways of doing business. Many logistics and supply chain companies involve environmental issues as an im- portant part of their CSR programmes. This is especially evident when it comes to managing their supply chains, and ensuring that downstream, best practice is followed for reducing waste, reducing carbon footprints, and recy- cling where possible. The most obvious benefit of CSR is an improved corporate image which supports a strong brand, the more en- vironmentally conscious a company is, the better its brand will stand in a greener marketplace. Initiatives such as Green Ship of the Future, a joint ini- tiative in which companies across the Danish Maritime Cluster join forces is a practice that brings benefit to not only the company, but to all stakehold- ers in the programme, wider society, or the environment. The Financial Times describes it as ‘a movement aimed at encouraging companies to be more aware of the impact of their business on the rest of society, including their own stakeholders and the environment’. CSR can positively affect your busi- ness and builds a socially conscious im- age for your company. In effect, CSR not only benefits the environment, but your company’s popularity too. According to the Environmental Pro- tection Agency, the transport sector is one of the largest contributors to green- house gas emissions at 29%, followed by the electricity industry at 22%. It is essential that the transport and logistics sectors invest in CSR to combat their harmful impact on the environment, and improve their approval ratings in the marketplace. to develop and test environmentally and climate friendly technologies that increase energy efficiency and reduce operational costs since its conception in 2008, are key in developing greener transportations methods, and key in boosting company profiles. The Green Next >