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BUSINESS MODEL Private Initiative on Development and Implementation of On-The-Road Bulk Carrier Haulage Tank Cleaning and Sanitization System for the Palm Oil Industry of Malaysia Prepared By : Mohammad Zambree Bin Diman Ever-Red Consolidated Sdn. Bhd. Date : June 2010

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Page 1: Bulk Carrier Tank Cleaning Proposal

BUSINESS MODEL

Private Initiative on Development and

Implementation of On-The-Road Bulk Carrier

Haulage Tank Cleaning and Sanitization System for

the Palm Oil Industry of Malaysia

Prepared By : Mohammad Zambree Bin Diman

Ever-Red Consolidated Sdn. Bhd.

Date : June 2010

Page 2: Bulk Carrier Tank Cleaning Proposal

In The Name Of Allah The Most Gracious And The

Most Merciful

I am making innumerable thanks to Allah the Almighty who has guided me to remember Him at this time. I thank

Him, for it is Him who has made this business model and study possible. Nothing is possible unless He made it possible

at this time.To my family for their belief in my effort.

To Ever-Red Consolidated Sdn. Bhd. for allowing their company to be the entrusted vehicle. To Abdul Muarrif

Tajuddin (former-MD of RedSea Engineering (M) Sdn. Bhd.) for the field trip to South Korea to gain experience in

tank interior cleaning technology. To Alpha Sierra Group of Companies for the trip to have dialogue with the system

designer which resulted in an MOU.

Also to William G. Urbani for his belief and support. Abdul Halim Jantan, CEO of Sterling Brokers (M) Sdn. Bhd. for

his availability. At the working level, SIRIM Berhad, MPOB Perlesenan and last but not least, all the consultants listed

in Contributors List for their constructive comment and effort.

I thank you all.

Mohammad Zambree Bin Diman

Page 3: Bulk Carrier Tank Cleaning Proposal

Table of Contents

1. Executive Summary & Objective 3

2. Introduction 8

3. Palm OilTransportation, Cleaning and Sanitization industry Outlook 17

4. Private Finance Initiative – AutomatedTank Interior Cleaning and Sanitization Implementation Model 21

5. Business Model for On-The-Road Palm OilTank Interior Cleaning System. 26

6. Prospects for the Industry 48

7. Renungkanlah 52

8. Attachments 53

Page 4: Bulk Carrier Tank Cleaning Proposal

1. Executive Summary & Objective

Palm oil invariably ends up as cooking oil or an edible ingredient in a whole range of food products and the concept of

“Farm to Table” is applicable to Ever-Red Consolidated Sdn Bhd in its pursuit of world class standards for

transportation of such food and quasi-food product.

The objective calls for development of standard procedures and protocol in compliance with the most discerning

regulatory requirements for palm oil and for that matter, any other food grade industry in any reputable and respected

nation.

“Farm to Table” is a concept concerning a multitude of food and related industries which accepts responsibility of

providing highest quality, greatest efficiency, highest standard of safety and security along the value chain. The concept

stresses on virtue of ownership of responsibility along this “food chain” which ensures “quality product on the table”.

Our terms of reference encompass the safe and secure movement of products from source facility eg. mills to refinery

and include provision of optimum sanitary conditions within the transport mechanism and between multiple points of

the product‟s journey. Transport vehicles involved in these movements are cleaned and sanitized in a verifiable manner,

thus preventing both unsanitary or unsafe conditions.

Page 5: Bulk Carrier Tank Cleaning Proposal

Brief on Core Capabilities

This private initiative is undertaken by a consortium of core capabilities led by Ever-Red Consolidated Sdn Bhd whichprepared the business model for development and implementation of on-the-road food grade bulk carrier cleaning andsanitization system for the palm oil industry.

They consist of organizations and individuals specialized in their respective areas of expertise viz.

Sterling Insurance Brokers (M) Sdn Bhd which has multi-million dollar corporate finance experience and which shall be theorganization that will provide the solid foundation in project financing if the need arises.

Alpha Sierra group of companies together with Ever-Red Consolidated Sdn Bhd have many years of experience in the fields ofproject management and construction. Between them, the experience encompasses both telecommunication, oil and gasindustries and being also human resource solution provider, the project management, design and implementation shall beachieved.

With regard to equipment, facility and management resources, our team consists of equipment designer (with designregistered in patent office), certified Ir, Doctorate of Industrial Engineering and consultants for training and standards.

Working in conjunction with us and on a collaborative effort to develop Guidelines and Standards for the proposal will beStandard Industries Research Institute Malaysia (SIRIM) which has worldwide recognition and therefore, will assistto alleviate Malaysia up to gold and global standard in the palm oil arena.

Page 6: Bulk Carrier Tank Cleaning Proposal

Guidelines & Standard Origin & Practicing Nation Cleaning Procedures

Recommended International Code of Practice For The Storage And Transport Of Edible Fats And Oils In Bulk (Rev.3-2005)

CODEX ALIMENTARIUS CAC/RCP 36 – 1987 (Rev.1 -1999, Rev.2 – 2001, Rev.3 – 2005)

If steam or water are used for cleaning, the system must be drained and completely dried before oil is handled. If detergents or alkali are used, all surfaces with which they have been in contact should be rinsed thoroughly with fresh water to ensure that no residues remain.

Technical Standard Issued By SCOPA For The Transport Of Edible Oils And Fats (Issue 4, May 08)

Seed Crusher Oil Processors Association United Kingdom & European Nation

Tankers Shall be cleaned between loads or as directed by SCOPA, at SCOPA approved wash Stations. Ensuring hoses and any fittings used are Visually clean, Dry and free from Odour.

Bulk Over-The-Road Food Tanker Transport Safety And Security Guidelines

Food Industry Transportation Coalition U.S. of America

Conform to the requirements in 21CFR110 (Current Good Manufacturing Practices(CGMPs) and 9CFR Part 417 (Hazard Analysis Critical Control Point(HACCP)Systems)

Code of Practice For Dairy Food Safety Dairy Authority South Australia (June 2005)

Code of Practice For Dairy Food Safety Australia

Adequate supply of suitable water quality. Cleaning and Sanitization programs are documented and validated

CRA Sweetener Terminal And Wash Guidelines (2006)

Corn Refiners Association North America

Scheduled cleaning and documented. Compliance with GMP given regulations 21CFR110.

Model Tanker Wash Guidelines For The Fruit Juice Industry (June 2009)

Juice Products Association U.S. of America

Clean-In-Place (CIP) System = Cleaning and sanitizing equipment that automatically delivers rinses, cleaners, sanitizers at a given pressure, time and concentration, that eliminates the need for manual cleaning and allows for consistent repeatable cleaning each time.

Tanker Wash Guidelines for Palm Oil Industry (May 2010)

SIRIM MS:ISO Malaysia

Development in Progress.

International Matrix on Guidelines and Standards for Oil Seed Products

Page 7: Bulk Carrier Tank Cleaning Proposal

Proposed Cleaning and Sanitization System for the Malaysian Palm Oil Industry

Guidelines Methodology Environmental Management System Malaysia Palm Oil Industry Code Of Practice of The Transportation Of Palm Oil Products

Clean-In-Place (CIP) System = Cleaning and sanitizing equipment that automatically delivers rinses, cleaners, sanitizers at a given pressure, time and concentration, that eliminates the need for manual cleaning and allows for consistent repeatable cleaning each time.

Tank Cleaning Facilities

Pollution prevention opportunities for tank cleaning operations are primarily directed at

reducing wastewater contaminated with tank residues and cleaning solutions. Data are not

available on the extent to which pollution prevention techniques are being implemented in

these operations however, it is likely that pollution prevention opportunities currently

being carried out are driven by the costs to treat or dispose of contaminated wastewater

and the costs of cleaning solutions. Because many tank cleaning operations are small

businesses, or are small segments of medium to large businesses, many of the acceptable

pollution prevention opportunities for the industry will be somewhat limited to the less

costly options, such as minor process modifications, operational changes and wastes

recycling.

Closed loop washing and rinsing systems. Recycling of wash and rinse water within a

closed loop system can substantially reduce the volumes of wastewater generated, fugitive

emissions and water use. Such systems can reduce wastewater generation by using the

same washing or rinsing solution many times before it is finally discharged to the

treatment system or POTW. In addition, contaminated solutions used in a wash or rinse

step of one tank can later be reused in a wash or rinse step of another tank which does not

require a clean solution. (e.g., the final rinse solution of one tank can be used as the initial

rinse of the next tank). Through the elimination of open tank washing and continuous

discharging to storage tanks and wastewater treatment systems, the potential for fugitive

emissions of volatile contaminants is lowered. Closed loop systems have the potential to

reduce a facility's operating costs through reduced wastewater treatment costs, reduced

cleaning solution use, and reduced water use. Capital costs, potential savings, and

pollutant reductions are all site specific.

Rinse and wash solution reuse. Improved management of wash and rinse solutions can

reduce wastewater generation with little or no equipment or process modifications.

Washing and rinsing solutions can be stored temporarily onsite to be used later in a wash

or rinse step that does not require fresh solution, such as the first wash or rinse step of a

highly contaminated tank. In addition, tank heels of caustics, detergents or solvents can be

stored for later use as cleaning solutions for other tanks. Some cost savings could be

realized through reduced wastewater treatment costs and reduced cleaning solution costs.

Capital costs may arise from increasing storage capacity.

Page 8: Bulk Carrier Tank Cleaning Proposal

2. Introduction

Why Do The Palm Oil Industry Need The Change Of Methodology For Tank Interior Cleaning?

Three types of deterioration can occur in oils and fats during storage and transportation. The susceptibility of oils and fats to

deterioration depends upon a number of factors including the type of oil or fat, whether it is crude, partially or fully refined

and whether impurities are present.These should be considered when storing and transporting the oil.

Oxidation

Contact of oils and fats with oxygen present in the atmosphere causes chemical changes in the product which downgrade its

quality. Some of the effects of oxidation may be rectified within an edible oil refinery context with some extra processing and,

therefore, additional cost incurred. However, the effects may be so severe that rectification is not possible.

There is much to be gained by reducing the amount of air contact and this principle forms the basis of several of the

recommendations. Oxidation proceeds more rapidly as temperature increases, so each operation should be carried out at the

lowest practicable temperature.

The rate of oxidation is greatly increased by the catalytic action of copper or copper alloys, even when trace amounts (ppm)

are present. Because of this, copper and copper alloys must be rigorously excluded from the system. Other metals, such as

iron, also have catalytic effects although less than that of copper.

Page 9: Bulk Carrier Tank Cleaning Proposal

Introduction (Continued)

Hydrolysis

The breakdown of fats to fatty acids is promoted by the presence of water particularly at higher temperatures.

Hydrolysis is also promoted by the action of certain micro-organisms. Tanks in which the oil is being stored or shipped

should always be clean and dry before use.

Contamination

Undesirable contamination may be from residues of a previous material handled in the equipment, dirt, rain, sea water

or through the accidental addition of a different product. In storage installations and ships, particular difficulty may be

experienced to ensure cleanliness of valves and pipelines, especially when they are common for different tanks.

Contamination is avoided by good design of systems, adequate cleaning routines and an effective inspection service,

and on ships by the carriage of oils in segregated tank systems in which the previous cargoes are included in the Codex

List of Acceptable Previous Cargoes.

Contamination is also avoided by the rejection of tanks which have carried as a last cargo products which are included

on the Codex List of Banned Immediate Previous Cargoes.

Previous cargoes not on the Codex List of Acceptable Cargoes are only to be transacted if agreed upon by competent

authorities of the importing countries.

Source of Information : Codex

Page 10: Bulk Carrier Tank Cleaning Proposal

Introduction (Continued)

Present day methodology in management, upkeep and hygiene of on-the-road bulk carrier tank interior is no longer relevantto the betterment of our nation‟s palm oil industry. We believe continuation of outdated practices will undermine confidencein the mind of the global consumer and hence detrimental to the long-term sustainability of Malaysia‟s palm oil industry.Briefly :-

1. Having manual cleaning approach for the carrier tanker inevitably results in inconsistency of practice, thus grosslyfailing to meet international standards.

2. Managing the environment is haphazard because standards for the discharge of effluent to the environment are largelyignored.

3. The present day manual methodology have to a certain extent disregarded safety and health as workers are required tobe in the tank to clean the interior.

4. Emergence in the local market of leftover CPO from the tankers mostly considered as waste material could tarnish theproduct image.

Page 11: Bulk Carrier Tank Cleaning Proposal

Summary of Palm Oil Industry Flow

Palm fruits are harvested in the form of Fresh Fruit Bunches (FFB), which are sent to mills for processing. This immediate

processing requires mills to be located in proximity of the plantation area.

On average a mill receives 570 tons of Fresh Fruit Bunches (FFB) which produces 120 tons of Crude Palm Oil(CPO). Some

private mills have their own tanker lorries, but capacities of these lorries are rather small, between 15 to 25 tons unlike

larger operations which use 40 tons and above.

With 25 tons tanker trucks, our estimates are some 7 tanker trucks loaded with CPO leaving the mill to the refinery on a

daily basis.

As for Palm Kernel (PK), typically about 30 tons are gathered daily. Normally, PK oil is not transported out daily because it

does not deteriorate upon storage at room temperature, unlike CPO which need to be processed immediately.

PK is usually accumulated for a couple of days before being transported with a 40 feet open trailer (which can carry 30 tons

of the product) to the crusher plant to extract Palm Kernel Oil (PKO).

. Statistic From MPOB

Page 12: Bulk Carrier Tank Cleaning Proposal

Summary of Palm Oil Industry Flow (Continued)

The mills process FFBs to extract CPO and by-product of

this process is Palm Kernel (PK). The CPO is transported to

refineries for further processing and PK is sent to the

crushers for extraction of Palm Kernel Oil (PKO). Output

from refineries are mostly Refined Bleached and

Deodorized (RBD) palm olein commonly known as cooking

oil and the rest sent to oleo chemical facilities or directly

exported.

Since processed palm oil is exported by the use of ship

tankers, it is only strategic that the refineries are located

close to the ports.

Export of palm oil and related products are through major

ports in West and East Malaysia such as Penang Port, Lumut

Port in Perak, Port Klang in Selangor, Pasir Gudang in

Johor, Kuantan in Pahang, Kuching Port, Bintulu Port and

Miri Port in Sarawak and Sandakan Port, Lahad Datu Port

and Kunak Port in Sabah.

Some of these ports have a dedicated vegetable oil tanker

pier just for handling exports of palm oil. The berth that

pumps palm oil into ocean tankers is linked via overhead

pipelines to facilitate direct loading and discharging of the

edible oil to privately owned onshore storage tank farms.

PRODUCTION OF CRUDE PALM KERNEL OIL

States

Jan - Dec

Total

2007 2008 2009

JOHOR 445,648 478,071 491,905

SELANGOR 409,643 496,956 446,189

OTHERS 317,583 376,385 404,376

P. MALAYSIA 1,172,874 1,351,412 1,342,470

SABAH/SARAWAK 734,739 779,987 754,589

MALAYSIA 1,907,613 2,131,399 2,097,059

Statistics from MPOB

Page 13: Bulk Carrier Tank Cleaning Proposal

Summary of Palm Oil Industry Flow (Continued)Palm Oil Export Terminals and Refinery Locations

Page 14: Bulk Carrier Tank Cleaning Proposal

Summary of Palm Oil Industry Flow (Continued)Palm Oil Export Terminals and Refinery Locations

Page 15: Bulk Carrier Tank Cleaning Proposal

Summary of Palm Oil Industry Flow (Cont’)Palm Oil Export Terminals and Refinery Locations

Page 16: Bulk Carrier Tank Cleaning Proposal

Summary of Palm Oil Industry Flow (Continued)Palm Oil Export Terminals and Refinery Locations

Based on statistics from Malaysia Palm Oil

Board (MPOB), load movement in the

industry‟s product is heavily skewed towards

port terminals. Therefore, it makes strategic

sense and it is also cost effective that any

cleaning facility should be erected and

located near export terminals or refinery

clusters as in Puspakom‟s concept.

This chart on this page displays estimated

movements of bulk carrier based on tonnage

exported in 2009. It is obvious that the

facility planned should be sufficient to fully

cater for the total needs of the Industry.

Total Daily

Tonnage Haulage By

CPO CPKO To Be 40 Tonnes

2009 2009 Transported Tanker

JOHOR 4,161,047 452,035 4,613,082 316

KEDAH

KELANTAN

MELAKA

NEGERI SEMBILAN

PAHANG 985,560 347,044 1,332,604 91

PERAK 808,166 81,828 889,994 61

PULAU PINANG 562,900 6,876 569,776 39

SELANGOR 3,066,150 348,867 3,415,017 234

TERENGGANU

P. MALAYSIA 9,583,823 1,236,650 10,820,473 741

SABAH 4,447,707 106,672 4,554,379 312

SARAWAK 1,693,779 71,801 1,765,580 121

SABAH/SARAWAK 6,141,486 178,473 6,319,959 433

MALAYSIA 15,725,309 1,415,123 17,140,432 1174

CPO and CPKO Volume by Export Terminal

States

Jan - Dec

Total

Page 17: Bulk Carrier Tank Cleaning Proposal

3. Palm Oil Transportation, Cleaning and Sanitization Industry Outlook

A typical tanker wash facility in the USA is

depicted in the photograph on the right hand

side. It is always strategically located just off

highways or major truck routes.

The facility is usually available for all types of

food grade materials depending on requirement

of each State.

Existence of the on-the-road carrier cleaning

facility is due to industry requirement and

standards. It is reported in the Gross Revenue

Report for Bulk Transporter‟s Tank Truck

Carrier that revenue for the industry is in excess

of USD 7 billion a year.

Page 18: Bulk Carrier Tank Cleaning Proposal

In the domestic market, our on-the-road bulk carriertransportation sector cleaning modus operandi is stone agecompared to the USA.

However our standards are acceptable if compared towhat most Western countries were doing some 20 yearsback.

In Malaysia, there are three major food grade industriesthat require use of on-the-road bulk carrier astransportation mode

1. Palm Oil Industry

2. Flour Industry

3. Granulated Sugar Industry

PRODUCTION OF CRUDE PALM KERNEL OIL

States

Jan - Dec

Total

2007 2008 2009

JOHOR 445,648 478,071 491,905

SELANGOR 409,643 496,956 446,189

OTHERS 317,583 376,385 404,376

P. MALAYSIA 1,172,874 1,351,412 1,342,470

SABAH/SARAWAK 734,739 779,987 754,589

MALAYSIA 1,907,613 2,131,399 2,097,059

PRODUCTION OF CRUDE PALM OIL

States

Jan - Dec

Total

2007 2008 2009

JOHOR 2,625,238 2,921,328 2,937,845

KEDAH 246,842 301,221 311,008

KELANTAN 226,737 275,916 250,572

MELAKA 103,413 119,280 125,966

NEGERI SEMBILAN 470,789 592,464 586,323

PAHANG 2,158,802 2,750,385 2,720,460

PERAK 1,719,431 1,940,432 1,980,885

PULAU PINANG 54,156 52,006 73,061

SELANGOR 574,429 673,978 664,069

TERENGGANU 447,165 502,630 470,275

P. MALAYSIA 8,627,002 10,129,640 10,120,464

SABAH 5,561,485 5,740,429 5,449,693

SARAWAK 1,635,259 1,864,372 1,994,780

SABAH/SARAWAK 7,196,744 7,604,801 7,444,473

MALAYSIA 15,823,746 17,734,441 17,564,937

Page 19: Bulk Carrier Tank Cleaning Proposal

Cleaning and Sanitization Industry Outlook

The on-the-road food grade bulk carrier industry is growing in tandem with the rising demand for palm oil etc. locally

and globally and as customers become more sophisticated, it is imperative that Good Manufacturing Practice is

adopted not only in factories but also within transportation of semi-finished products. Thus, the development and

implementation of Automated Food Grade Tank interior Cleaning and Sanitization facility for palm oil on-the-road

bulk carrier should not be delayed any further.

After palm oil, the technology can be applied to a whole spectrum of other food grade products such as flour and

sugar. Furthermore, even non-food grade commodities such as cement and ready-mix concrete have started to clean

their bulk carrier tank and mixer truck interiors because the exercise provides higher yield towards product volume

transported.

The industry‟s financial return is dependent on overall cost of the facility and wash frequency standards to be

implemented for the tankers. Based on the requirements of SCOPA or European Cleaning Documents, National

Institute of Oil Seed Products, every shipment is required to have its tanker interior cleaned prior to loading.

Implementation of the project will provide a win-win situation for both government and consortium to secure the

future of Malaysia‟s palm oil industry and provide employment and revenue for the sector.

Thus, we envisage the government assisting in allocating land for facility location at minimal cost as a catalyst to kick-

start this initiative for mutual benefit.

Page 20: Bulk Carrier Tank Cleaning Proposal

Conclusion

The project provides Malaysian palm oil Industry‟s fleet of bulk carrier tanker including industry storage tanks with leadingedge technology for their upkeep, hygiene and cleanliness of interior. This is achieved with standardized wash protocols basedupon documented food safety systems, risk analysis and HACCP principles.

Furthermore, implementation and operations by an independent party will enhance credentials of the process. Consistency ofstandards will be upheld and with information technology, traceability of tanker wash utilization is enabled for efficient andeffective management.

There will also be control of standards in regard to interchangeability from one food grade to another for the bulk carrierwhich would ultimately reduce or eliminate losses due to contamination during transportation. It is envisaged that tanker up-time will be increased with an improved and standardized sanitization cycle.

Another tangible benefit from this project is the controlled discharge of washing affluent to the environment which wouldplace us as a respected nation in terms of environmental responsibility and at par with the more “green” and advancedcountries.

Finally, our methodology can also be applied to other food grade sectors which would create employment opportunity acrossthe relevant logistic operations and with presence of a “Code of Ethics” and also through automated, safe and hygienicmethods, there is assurance of product quality. Thus, further securing public trust and assisting in penetration of globalmarkets.

Page 21: Bulk Carrier Tank Cleaning Proposal

4. Private Finance Initiative - Automated Tank Interior Cleaning and Sanitization

Implementation Model

Objective

The primary objective of this section is to recommend Private Finance Initiative (PFI) in the case of Automated Tank

Interior Cleaning and Sanitization project for the Malaysian Palm Oil Industry. This approach has a number of

perspectives which is discussed below.

What is PFI?

PFI is a form of public private partnership (PPP) that marries a public procurement program where the public sector

purchases capital items from the private sector to an extension of contracting-out where public services are contracted

from the private sector.

PFI differs from privatization in that the public sector retains a substantial role in PFI projects, either as the main

purchaser of services or as an essential enabler of the project. It differs from contracting out in that the private sector

provides the capital asset as well as the services.

The PFI differs from other PPPs in that the private sector contractor also arranges finance for the project.

Page 22: Bulk Carrier Tank Cleaning Proposal

Under the most common form of PFI, the private sector designs, builds, finances and operates (DBFO) facilities based on

„output‟ specifications decided by public sector managers and their departments. Such projects need to achieve a genuine

transfer of risk to the private sector contractor and use of public resources is minimized.

In a PFI, the public sector does not own an asset, but pays the PFI contractor a stream of committed revenue payments for the

use of the facilities over the contract period. Once the contract has expired, ownership of the asset either remains with the

private sector contractor, or is returned to the public sector, depending on the terms of the original contract.

Types of PFI projects

There are three broad types of PFI projects viz. free-standing projects, joint ventures and services sold to the targeted interest

sector.

1. Free-standing projects

The private sector undertakes a project on the basis that costs will be recovered entirely through a charge for the services to

the final user. The Government may contribute value to the project in terms of initial planning and statutory procedures, for

instance, determining the route of a linking road etc.

When the private sector is wholly responsible for a project needing Government approval, and can recoup costs through

charges at the point of use, the scheme should be judged by its own merit and not be compared with a purely public sector

project.

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2. Joint ventures

Joint ventures are projects to which both the public and private sectors contribute, but where the private sector has overall

control. In many cases, the public sector contribution is made to secure wider social benefits, such as road decongestion

resulting from a river crossing. In other cases Government may benefit through obtaining services not available within the

time scale required. The project as a whole must make economic sense and competing uses of resources must be considered.

The main requirements for joint venture projects are:

Private sector partners in a joint venture should be chosen through competition;

Control of the joint venture should rest with the private sector;

The Government‟s contribution should be clearly defined and limited. After taking this into account, costs will need to be recouped from

users or customers; and

The allocation of risk and reward will need to be clearly defined and agreed in advance, with private sector returns genuinely subject to risk.

The Government‟s contribution can take a number of forms, such as concessionary loans, equity, transfer of existing assets,

ancillary or associated works, or some combination of these. If there is a Government equity stake, it will not be a controlling

one.The Government may also contribute in terms of initial planning regulations or straight grant-subsidies.

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3. Services sold to the private sector with national interest

After careful consideration of the above two types of PFIs, we come to a third type which is conducive to our project

on palm oil industry and food grade bulk carrier which is predominantly service-orientated.

This third type focuses on services provided by the private sector to a specific industry with public interest. A

significant part of the cost here is capital expenditure which is borne by the private sector with an opportunity to

garner capital gain.And in this particular case, this cost is borne by the consortium.

The services contributed by the consortium will in turn serve the nation in order to achieve:

Standards in accordance to international requirements for the bulk carrier industry

International recognition and confidence pertaining to the nation‟s primary economic contributor

Sustainable control of industry effluent to the environment

Elevation of food grade bulk carrier logistics to higher efficiency and effectiveness

Exacting safety through no-man entry with regard to the tank interior cleaning process

Higher turn-around time for bulk carrier from one food grade to another

Beneficial transfer of technology to this country which is a leading exporter of palm oil

The bulk carrier tank interior cleansing and sanitizing industry is compelled to reassure customers that services

provided are value for money and are of the highest standards. With this type of PFI, they can also be rest-assured that

services sold will have national interest at its core.

Page 25: Bulk Carrier Tank Cleaning Proposal

Private Finance Initiative Project Methodology (Cont’)

Consultant

Project Execution

Project Team

Project Scope

Requirement Analysis

Status Quo

Automated Tank Interior Cleaning System Business

Analysis

Corporate Objective

Strategic Plan

Automated Tank Interior Cleaning System Business

Needs

Automated Tank Interior Cleaning System Business

Case

Consultants

-Budget Production-Corporation-Merger/Acquisition-Customer Service-Deregulation

Auto. Tanker

Cleaning System

Yes

No

Operating Objectives

Financial Feasibility

Component Companies As Part

Of Consortium

- Equipment Tech.- Software Tech.- Land- Human Resource

Established Operating

Partnership / Implementation

Page 26: Bulk Carrier Tank Cleaning Proposal

5. Business Model for the On-The Road Palm Oil Tank Interior Cleaning Industry

What is required is a single entity that is given the mandate to establish a protocol of standard procedures for cleaning

of tank interiors which is regulated and which would apply to all palm oil and food grade on-the-road bulk carriers.

This standardization will include detailed protocol, method for and full compliance with regulatory requirements of

Malaysian Palm Oil Board with guidance from Standard Industries Research Institute Malaysia (SIRIM).

The establishment of standard tanker wash protocols with audit trial will revolutionize the transportation aspects of

Malaysia‟s palm oil industry. And the presence of SIRIM together with third-party auditors will provide an avenue to

validate successful compliance of tanker wash protocol through proper documentation and records.

Finally, standard protocols provide a consistent, reliable, and verifiable mechanism for addressing food safety and

security concerns associated with food grade tanker transportation. And standard wash protocols based on reference

food safety system, risk analysis, and HACCP principles provide the tanker wash industry reasonable expectations of

consistency in meeting industry demands and requirements.

Page 27: Bulk Carrier Tank Cleaning Proposal

Palm Oil Mill

Oleo Chemical

Plant

Refinery

Cleaning Facility

Export

Terminal

Pipe Line

Loaded Trip

Washed Trip

Unloaded Trip

LegendBusiness Model for On-The Road Palm Oil Tank Interior Cleaning Industry Implementation Model - Proposed Operations Flow (Continued)

PROPOSE FLOW OF OPERATIONS

Page 28: Bulk Carrier Tank Cleaning Proposal

Business Model for On-The Road Palm Oil Tank Interior Cleaning

Proposed Model - Proposed Operations Flow (Continued)

After preliminary analysis of industry outlook of the proposed automated on-the-road bulk carrier tank interior

cleaning and sanitization system, a strategic plan for the project was developed based on the following precepts :-

1. With five export terminals operational throughout Peninsular Malaysia and palm oil refineries located in their

vicinities, it is obvious the planned facility should be located in proximity to export terminals. However, it is also

important to consider locations of palm oil mills relative to the planned cleaning facility.

2. Therefore, we require to analyze all locations of palm oil mills, their capacities and type of products processed.

Next step would be to identify their bulk transport operator and of course routes assigned for their fleet of

trucks which is crucial information necessary to decide on location of the cleaning facility.

3. The second half of this study includes analysis of potential locations for the automated cleaning facility. In

addition there is a study on the cleaning facility‟s maintenance center network configuration which is paramount

for continued support for the cleaning facility‟s operations.

Page 29: Bulk Carrier Tank Cleaning Proposal

Business Model for On-The Road Palm Oil Tank Interior Cleaning Proposed Model - Proposed Operations Flow (Continued)

Let us take Johor as an example. From

the diagram on the right hand side, we

need to analyze and study the

geographical distribution and

production capacity of palm oil mills

before determining the site for the

facility to be erected.

Careful analysis will lead to tangible

benefits such as avoidance of congestion

all the way to efficient maintenance.

It would be ideal for the facility location

to be along tanker truck major delivery

routes. Thus, providing convenience to

the drivers and minimizing overall costs.

Stars = Potential Cleaning Facility Locations

Page 30: Bulk Carrier Tank Cleaning Proposal

Business Model for On-The Road Palm Oil Tank Interior Cleaning Proposed Model - Information Technology and Operations Flow

The consortium will take advantage of the latest software systems available to keep a leading edge in terms of IT

coverage and support. The system will be customized according to need requirements and in-house expertise shall

provide assurance in terms of effective and efficient delivery system suited to local conditions.

The major objective here is to conceptualize, develop and implement an Automated On-The-Road Bulk Carrier Tank

Interior Cleaning and Sanitization Management Reporting System that will not only serve the needs of the facility but

also flexible enough to be upgraded as the business progresses.

Certificate of compliance

Thus, similar to the Puspakom concept, a certificate of compliance would be issued to bulk carrier that has undergone

washing at approved facility. This certificate will carry details of washing method and conformance. Its details and

authenticity can be further verified online with a corporate portal linking to the facility.

This certificate must be produced and verified by loading/unloading facility operator, together with visual verification

of all un-tampered hatch seals. Hence, allowing sufficient proof that the bulk carrier is fit to carry food grade palm oil

product.

Page 31: Bulk Carrier Tank Cleaning Proposal

Internet

Certificates of compliance – Verification and LifecycleISSUING and Updating Corporate Information System

Corporate

Information

System

Certificate of

Compliance

No. AH5D-4567

(Loading Copy)

Certificate of

Compliance

No. AH5D-4567

(Unloading Copy)

Facility Pasir Gudang

Certificate No. AH5D-4567

Mill

Loading Code

Plant

Unloading Code

Status WASHED

After completion of

washing at approved

facility, a set of

certificates of compliance

is generated by the

facility‟s computer

system

At the same time, facility‟s system

would update Corporate

information system on the newly

created certificate

Pasir Gudang Facility

Upon receiving information on new certificate

created at facility, a tracking and control

record will be created at corporate data center

Page 32: Bulk Carrier Tank Cleaning Proposal

Internet

Certificates of compliance – Verification and LifecycleValidating authenticity of certificate

Corporate

Information

System

Facility Pasir Gudang

Certificate No. AH5D-4567

Mill Alaf Pam Oil Mill

Loading Code X43A-5583

Plant

Unloading Code

Status LOADED

Upon arriving at palm oil

mill, Loading certificate is

presented to loading

operator

Operator then employ any means

available to him to verify the validity &

authenticity of the certificate with

Information Portal and request loading

confirmation code

Upon receiving validity request, Center would

response with appropriate code and update the

certificate‟s status in the corporate central

database

Alaf Palm Oil Mill

Upon receiving

confirmation code,

operator can then proceed

to load the tanker with

product as per their

existing procedures, and

update the UNLOAD

certificate with the code

received.

Certificate of

Compliance

No. AH5D-4567

X43A-5583

(Unloading Copy)

After acquiring the certificate,

tanker would proceed to its

destination palm oil mill to load

up with oil product

Page 33: Bulk Carrier Tank Cleaning Proposal

Internet

Certificates of compliance – Verification and LifecycleValidating authenticity of certificate (cont/-)

Corporate

Information

System

Facility Pasir Gudang

Certificate No. AH5D-4567

Mill Alaf Pam Oil Mill

Loading Code X43A-5583

Plant Pasir Gudang Ref

Unloading Code TU74-A98P

Status COMPLETED

After arriving at refinery,

Unloading certificate is

presented to plant operator

Operator then employ any means

available to him to verify the validity &

authenticity of the certificate with

Information Portal and request

unloading confirmation code

Upon receiving validity and unloading request,

Center would response with appropriate code

and update the certificate‟s status in the

corporate central database, marking the

certificate as COMPLETED.

Upon receiving

confirmation code,

operator can then proceed

to unload the tanker as per

their existing procedures,

and update the UNLOAD

certificate with the code

received.

Certificate of

Compliance

No. AH5D-4567

X43A-5583

TU74-A98P

(Unloading Copy)

When loading is done, Tanker

continue to its destination

refinery/Chem Plant/Export

Terminal

Pasir Gudang Refinery

Page 34: Bulk Carrier Tank Cleaning Proposal

Business Model for On-The Road Palm Oil Tank Interior Cleaning Proposed Model - Information Technology and Operations Flow (Continued)

Verification of Authenticity and Lifecycle

After the bulk carrier has been cleaned at an approved facility, two sets of certificate of compliance will be issued.

These certificates of compliance will be proof that a standard wash has been performed before the bulk carriers are

allowed to load and unload their products.

The Certificate must be presented to mill operators, whom in turn must verify the authenticity and validity of the

certificate via an online portal, upon which a loading confirmation code will be issued to the operator. Only after that,

will the palm oil products be allowed to be loaded.

Similarly, the second certificate must be presented to the product unloading operator at the bulk-carrier‟s destination.

This operator must also verify authenticity and validity of the certificate online to confirm that the bulk-carrier has

been cleaned according to regulatory requirements before discharging their products to the static tanks facility.

Thus, cargo should arrive within a stipulated time frame and an unloading confirmation code will be issued to the

operator. Simultaneously, the certificate will be classified as expired at central database to prevent its further use.

Page 35: Bulk Carrier Tank Cleaning Proposal

Business Model for On-The Road Palm Oil Tank Interior Cleaning Proposed Model - Information Technology and Operations Flow (Continued)

Criteria for Issue of Certificate

In order for the bulk carrier to obtain certificate of compliance, the bulk carrier operator has to strictly adhere to the tank

interior cleaning protocol at any approved facility for type of wash required. The wash-type will in turn depend on the type of

food grade material that the bulk-carrier needs to transport.

The system will be fully computerized and automated in terms of monitoring and recording wash-type parameters such as

water temperature (inlet & outlet), pressure, time, volume and degreaser used, as well as traces of contaminant residues in

the after-rinse during various stages of washing.

At the end of the washing cycle, the same system will compare the data it has collected and match them against the preset

criteria of the wash-type requested. Only when all the conditions are satisfied, will the computer generate an authentication

code, upload it to corporate portal and print out the certificates of compliance

.

There is little human intervention required in the system described above and complete automation is achieved for the

following processes viz.

• Verification that cleaning the tank interior has met the washing standard

• Generating authentication code and uploading of information to corporate portal

• Issuance/printing of certificates of compliance

Page 36: Bulk Carrier Tank Cleaning Proposal

Information Technology (IT) As An Enabling Tool

The recognition of the importance of the human functions in any system has led to a definition of information systems

that include four components: the people, the equipment, the computer programs and the procedures that specify how

information is captured, stored, processed and retrieved to support the ongoing operations.

Information system is an essential part and one of the critical success factors of the project. On the one hand it

monitors key performance indicators showing how well a given process runs and, provides tools for organization

control and management of resources to achieve a given set of objectives. On the other hand it provides evidence that

the cleaning process has been done as required. In combination with the Standard Operating Procedures, it provides

detection, documentation, control, resolution and reporting of abnormal conditions.

The task of designing and implementation of the cleaning and sanitization facility will be far from complete without

working in conjunction with the Information Technology know-how in our consortium. One major advantage the

consortium has is the local expertise in this field. In conclusion, the Ever-Red Consolidated Sdn Bhd consortium has

the knowledge, ability, experience and most of all the human resources be it IT or non-IT related to achieve its

objective.

Page 37: Bulk Carrier Tank Cleaning Proposal

The Proposed Automated Cleaning Equipment for On-The-Road Bulk Carrier Tank Interior

The proposed automated washing system is unique, compact, modular and has the flexibility to clean the interior tank of

trucks used for transportation of different food products such as flour and sugar.

The two-tank truck washing system has two sets of mirrored equipment installed side by side. This particular configuration

has throughput of 30-40 tank trucks per day. Based on the USA experience we recommend this type of system configuration.

However single tank truck configuration may be ordered with capacity to process 15-20 tank trucks per day. Should there be

more capacity needed at a later stage, a second set of equipment can be procured. This will not require additional manpower

because both washing units (capable now to process two trucks at a time) are operated by one operator from the same work

platform.

The above system is compliant with USA “3A” requirements for tanker washing equipment and is also approved and certified

by the following companies: “Coca Cola”, “Nestle”, “Arrowhead”, “Calistoga”, “Juicy Juice”, “Minute Maid”, “Ocean Spray”,

“Odwalla”, “Vitel”, “Cardill Juice”, and “Sunkist”.

In addition, this is the only equipment certified by the “Florida Citrus Processors Association”. The system is also compliant

with JPA (Juice Products Associates) and USDA requirements and with the requirements for packing for kosher products.

Such credentials and approval from industries validate its high quality design, construction and performance. Finally, each

module can be configurated to allow the operator to select 8 types of automated washing cycles depending on food product

carried by the tanker trucks.

Page 38: Bulk Carrier Tank Cleaning Proposal

The Proposed Equipment (Continued)

The automated washing cycle is controlled by “Allen

Bradley” PLC, eliminating possible operator errors. An

operator only selects type of food product, enters it using

system control panel with touch screen (See Photo #2) and

system performs fully automated washing cycle specifically

designed for this food product. Two tanker trucks washing

system have two symmetrically placed control panels. The

control panel has control gauges and graphic display for

process monitoring in real time.

The control panel is also equipped with recorder for logging

process data and operator‟s input. Two personnel are required

to operate the system, one operator and one supporting

person. The control panel overview is shown in photo #2.

Control buttons to select type of washing cycle depending on

the food product, are placed on the top part of the screen.

The most important process parameters (tank liquid levels,

washing liquid temperature etc) are displayed on the graphic

screen. Equipment status and emergency situations are also

monitored on screen

Page 39: Bulk Carrier Tank Cleaning Proposal

The Proposed Equipment (Continued)

Minimal system knowledge is required by operating

personnel. Personnel can operate the system without

supervision just after two days training which is

developed by our Associate. Incidentally, one full

washing cycle for one tank truck takes on average 40

minutes. During this time personnel can wash

exterior of the tanker increasing service value.

The control panel is placed directly on a service platform

that allows operator to work in direct contact with its

support technician who is responsible for installation of the

man way washing mechanism adaptor.

Page 40: Bulk Carrier Tank Cleaning Proposal

Bulk Carrier / Tanker

1600F

Control Point – 2a

During wash, water temperature

at drain outlet must be flowing

at 1600F

Sens

or

Pro

be

Control Point - 2

Water temperature at drain outlet

must reach1600F before the 15

minutes wash cycle begins

Control Point - 1

In-flow water temperature at

reservoir must reach 1800F

before allowing it to flow into

tanker

1800F

Sens

or

Pro

be

Data are captured and monitored at all

control points into computer system, which

also signal a green light for proceed or red

light for non-compliance.

Reservoir

Sens

or

Pro

be

Control Point – 3

Water must be tested free of chemical agent before

it is accepted as completely rinsed.

WASHING CYCLE FLOW CONTROL AND DATA CAPTURING/MONITORING

400 Gallon

Final Rinse

Tank

400 Gallon

Pre-rinse

Tank

400 Gallon

De-grease

Tank

400 Gallon

Caustic Wash

Tank

Sens

or

Pro

be

Control Point – 1a

To sense the type of wash

liquid in use

Page 41: Bulk Carrier Tank Cleaning Proposal

The Proposed Equipment (Continued)

A roll out gangway with adjustable height is used to install

man way adapter (See Photo #3). This facilitates not only

hatch adaptor installation on the tank trucks but also

trucks positioning. After man way adapter is installed on

the top man way, hoses delivering washing liquid are

connected as well as vent flex ducts (See Photo #4).

Support person responsibilities include connection of

raining hoses to the tanker truck and helping drivers to

properly position trucks in relation to the washing station.

Page 42: Bulk Carrier Tank Cleaning Proposal

The Proposed Equipment (Continued)

High pressure water jets are used during the washing

cycle. Water is re circulated through the system reducing

water consumption. On average water consumption is

about 0.2 cubic meters per wash.

Washing liquid (water, washing solution and disinfecting

liquid) is fed under pressure 13.4 Bar to the washing

heads. After final rinse with cold water, the tank is cooled

to ambient temperature, hatches are closed and seals are

installed.

Each module is equipped with own water softener, boiler

and heat exchanger for preparing washing liquid. Compact

heat exchanger allows washing liquid to be heated up to

90°C. Water treatment unit is located at the side along

with filter and softener to feed boiler with cleaned water

(See Photo #6).

Page 43: Bulk Carrier Tank Cleaning Proposal

The Proposed Equipment (Continued)

If the customer is able to provide required quantity of steam,

then steam generator and water cleaner should be excluded

from scope of supply. Thus, in this case, customer is

responsible for required quantities as well as quality (pressure,

temperature, steam flow, solid particulate content and

dissolved salts content) of steam supply. The heat exchanger‟s life

span will be reduced dramatically should steam flow contain

excessive amounts of solid particulates and dissolved salts. The

washing system is equipped with tank air- drying unit that dries

the tank using hot air. Usually this unit is used to dry tanks

used for transportation of refined food grade oils.

Page 44: Bulk Carrier Tank Cleaning Proposal

The Proposed Equipment (Continued)

The total equipment is mounted on

skids (See Photo #7) hence, allowing less

than a week for installation and startup

time. All piping, pumps, connections,

fittings are made from material approved

for use in food grade industry – mainly

food grade stainless steel.

To intensify the washing process steam

heat exchanger brings washing

solutions temperature close to water

boiling point. Vapor and vent gases from

washed tank are evacuated from tank by

the draft fan.

Finally, tanks are cooled to ambient

temperature after final rinse using cold

water.

Page 45: Bulk Carrier Tank Cleaning Proposal

Size of Facility and Estimated Cost

Total

Tonnage

CPO CPKO CPO CPKO To Be

2009 2009 2009 2009 Transported

JOHOR 2,937,845 491,905 4,161,047 452,035 3,429,750 66 16 11 6 85,744 235

KEDAH 311,008 311,008 6 7,775 21

KELANTAN 250,572 250,572 10 6,264 17

MELAKA 125,966 125,966 3 3,149 9

NEGERI SEMBILAN 586,323 586,323 15 2 14,658 40

PAHANG 2,720,460 985,560 347,044 2,720,460 69 2 2 1 68,012 186

PERAK 1,980,885 808,166 81,828 1,980,885 45 4 3 1 49,522 136

PULAU PINANG 73,061 562,900 6,876 73,061 3 3 1 4 1,827 5

SELANGOR 664,069 446,189 3,066,150 348,867 1,110,258 22 13 9 6 27,756 76

TERENGGANU 470,275 470,275 13 11,757 32

OTHERS 404,376 404,376 10,109 28

P. MALAYSIA 10,120,464 1,342,470 9,583,823 1,236,650 11,462,934 286,573 785

SABAH 5,449,693 4,447,707 106,672 5,449,693 117 9 11 136,242 373

SARAWAK 1,994,780 1,693,779 71,801 1,994,780 41 3 5 49,870 137

SABAH/SARAWAK 7,444,473 754,589 6,141,486 178,473 8,199,062 204,977 562

MALAYSIA 17,564,937 2,097,059 15,725,309 1,415,123 19,661,996 410 50 44 18 491,550 1,347

Estimated

Annual

Haulage

Movemement

Using 40t

Estimated

Daily

Haulage

Movememe

nt Uses 40t States

Palm Oil Industry Facilities 2009

Palm Oil

Mills

Plant

Palm Oil

Refinery

Plants

Palm Oil

Crusher

Plant

Oleo

Chemical

Plant

Volume Produced

by States

Volume to Export

Terminal

Estimated Haulage Movement Tonnage (2009)

Page 46: Bulk Carrier Tank Cleaning Proposal

Size of Facility and Estimated Cost (Continued)

The Size of The Facility

The size of the facility is dependent on projected business volume which in turn is related to the size of palm oil

industry in say each location.

The Cost Per Facility

The cost per facility will vary according to location and depending on the cost of land the variance for facility cost

can be significant. However, current estimates are for cost of Tank Interior Cleaning Equipment with Centrifuge

that is with the ability to process and separate water, oil and solidify the sludge will be in the region of RM 4

Million per locations. And cost of building using prefabricated steel structure to house the equipment and washing

facility will be about half of the equipment and Machinery.

Page 47: Bulk Carrier Tank Cleaning Proposal

Size of Facility and Estimated Cost (Continued)

Page 48: Bulk Carrier Tank Cleaning Proposal

6. Prospects for the Industry

Customer is the key to sustainability of any industry.

It is expected, with introduction of the new Automated Tank

Interior Cleaning system, efficiency and capacity of the food

grade industry shall significantly increase in the long run

together with customer loyalty.

This pioneer industry shall provide services that enhance the

efficiency and utilization of the tanker and thereby benefit the

bulk carrier operator as well as encourage greater consumer

confidence for the future.

Aside from primary focus on palm oil, there are three other

major industries identified that could contribute to tremendous

growth in the automated tank interior cleaning and sanitizing

industry.

They are :-

1. Flour

2. Granulated Sugar

3. ISOTanks

Page 49: Bulk Carrier Tank Cleaning Proposal

Palm Oil Logistics

Malaysian palm oil movements is in the region of 20 million

tons per year. On average, this movement utilizes 40-tonne

bulk carrier tank from mills to refinery and export terminals.

It is estimated that revenue for this logistics industry is in the

region of RM 0.75 billion per year.

The structure of transportation business consists of larger

plantations having their own transport subsidiary to serve in-

house needs. These subsidiaries serve their principal and sell

their excess capacity to other palm oil mills.

There are also a number of bulk carrier transport service

providers whose core business activity is transportation

contractor to the industry.

These operators provide services to support and fill the gap

for smaller mill operators in transporting their products to

refinery etc.

ESTIMATED

HAULIER (40t)

CPO CPKO MOVEMENT

2009 2009 TOTAL PER YEAR

JOHOR 2,937,845 491,905 3,429,750 85,744

KEDAH 311,008 311,008 7,775

KELANTAN 250,572 250,572 6,264

MELAKA 125,966 125,966 3,149

NEGERI SEMBILAN 586,323 586,323 14,658

PAHANG 2,720,460 2,720,460 68,012

PERAK 1,980,885 1,980,885 49,522

PULAU PINANG 73,061 73,061 1,827

SELANGOR 664,069 446,189 1,110,258 27,756

TERENGGANU 470,275 470,275 11,757

OTHERS 404,376 404,376 10,109

P. MALAYSIA 10,120,464 1,342,470 11,462,934 286,573

SABAH 5,449,693 5,449,693 136,242

SARAWAK 1,994,780 1,994,780 49,870

SABAH/SARAWAK 7,444,473 754,589 8,199,062 204,977

MALAYSIA 17,564,937 2,097,059 19,661,996 491,550

States

PRODUCTION BY

STATE

PRODUCT MOVEMENT

Page 50: Bulk Carrier Tank Cleaning Proposal

Flour Mill Logistics

The industry leader, Malayan Flour Mills Berhad (MFM) has

operations located in Lumut and Pasir Gudang with total

milling capacity of 1,250 tons of wheat per day.

It is a food grade industry that requires all of their cargo

trucks to be thoroughly inspected to ensure trucks are

hygienic and comply with international standards as well as

HACCP guidelines.

Their products are transported through bags, pallet and bulk

carrier via a fleet of self managed bulk tankers and cargo

trucks of multiple sizes together with a group of strategic

transportation partners to ensure timely delivery.

Their tankers can carry efficient loads of between 21 to 25

MT per delivery and they go through rigorous cleaning and

servicing schedule to ensure uncompromised quality is

delivered.

Page 51: Bulk Carrier Tank Cleaning Proposal

Granulated Sugar Logistics

Granulated sugar industry is similar to the flour industry. Both use bulk carrier as part of their product transportation mode.

At present, there are four major producers of the product;

1. Malayan Sugar Manufacturing Berhad

2. Central Sugar Refinery Berhad

3. Kilang Gula FELDA Perlis Berhad

4. Gula PadangTerap Berhad

Page 52: Bulk Carrier Tank Cleaning Proposal

7. RENUNGKANLAH

Step 1

Connect a hose to the bulk carrier drain valve and position the hose to empty into an approved collection tank. Open the drain valve.

Step 2

Lower your steam cleaning equipment (with a degreaser) into the bulk carrier. Enter the tank wearing a bio-hazard suit with a breathing tank.

Step 3

Steam clean inside the tank with a degreaser. Allow the waste water to exit through the drain valve. Inspect the tank as you clean, making certain that all deposits are cleaned off by the high-pressure steam.

Step 4

Steam clean the tank interior a second time using plain water without a degreaser. Wash all of the degreaser out of the bilk carrier.

Step 5

Remove the steam cleaning equipment and exit the bulk carrier. Do NOT close all valves--leave the entry hatch open as the car dries.

Step 6

Close the drain valve, remove the hose, and properly dispose of the waste water following all DOE directives.

Various industries require to clean and

sanitize the on-the-road bulk carrier

tanker. Lets ask ourselves, even with

current outmoded procedures, do the

industries practice what is required of

them? How much time is required to

have the tanker cleaned? Is it really clean?

What happened to the effluent? Most of

all, how many more lives will the price

be for an outdated practice?

Let us step back for a minute to ponder

and wonder what condition is our tank

interiors in? It is high time to change the

methodology and system. It is time to

change.

Mohammad Zambree Bin Diman

Page 53: Bulk Carrier Tank Cleaning Proposal

Contributors

MOHAMMAD ZAMBREE BIN DIMAN Independent Consultants, Director, Ever-Red Consolidated Sdn. Bhd. Author of Proposal For Food Grade Bulk Carrier Tank and Static Storage Tank Cleaning System. Kuantan , Pahang, Malaysia.

MALAYSIA PALM OIL BOARD RESOURCE CENTER, Bangi, Selangor, Malaysia.

AHMAD KHAIRUDIN BIN ZUBIR Executive Director Ever-Red Consolidated Sdn. Bhd., KemamanTerengganu, Malaysia.

WILLIAM G. URBANI, System Designer-Oil & Gas, Food Grade Patented Cleaning Machinery, Former CEO 3III, Stockton, California, USA.

ABDUL MUARRIF TAJUDDIN BIN ABDUL MUTALIB, Accounting Consultants, Former MD RedSea Engineering (M) Sdn. Bhd. Kuantan, Pahang, Malaysia.

CAPT ® SHAHARUDIN BIN ARRIFFIN, CEO Alpha Sierra Group of Companies, Kuala Lumpur , Malaysia.

ABDUL HALIM BIN JANTAN CEO Sterling Insurance Brokers (M) Sdn Bhd, Kuala Lumpur Malaysia.

FOLIZAN BIN MOKHTAR Senior Manager Sterling Consultants (M) Sdn. Bhd. Kuala Lumpur, Malaysia.

ANTHONY CHARLES AMALDASS Principal Consultant, Insol Consultantcy Sdn. Bhd. Kuala Lumpur, Malaysia.

Dr. HOH SEE MIN (PhD) Industrial Engineering, Petaling Jaya, Selangor, Malaysia.

SUGUMARAN Consultant, Insol Consultantcy Sdn. Bhd. Kuala Lumpur, Malaysia.

LAURIE CORNELL, Vice President, Industrial Design and Fabrication Inc., Stockton, California, USA.

SIRIM QAS INTERNATIONAL SDN. BHD., Senior Manager, Chang Boon Peng, Nor HashimahBinti Ismail, Head, Sabariah Binti Marzuki, Shah Alam, Selangor, Malaysia.

Page 54: Bulk Carrier Tank Cleaning Proposal

Contributors (Cont’)

STEPHEN YAP CHIN KEONG, Principal

Consultants, Quality Partnership Sdn. Bhd. Kuala

Lumpur Malaysia.

Dr. MICHAEL LOH TOON SENG (PhD), Author,

Certified Productivity Specialist, Trainer, Principal

Consultant IBM, Singapore.

RICHARD HOH SEE KHIN, IT System Analyst,

Data Base Designer, ARD Consulting Sdn. Bhd.,

Petaling Jaya, Selangor, Malaysia.

YAKOV REZNIKOV, Director, KMT International

Inc. Los Angeles, California, USA.

NICK IM SOO PARK, Vice President, MegaMacs

Korea, Busan, South Korea.

Datok Ir. ZAINI BIN DIMAN, Vice President,

Telecom Malaysia Sdn. Bhd. Shah Alam, Selangor,

Malaysia

LIEW KIM CHAI, Accountant, Petaling Jaya,

Selangor, Malaysia.

ZAILAN BIN DIMAN, Package Manager,

Uzbekistan GTL Project, Petronas, Rome , Italy.

AHMAD FAISAL BIN ZAINI, Research Assistant

Bsc. Biology, Bath University, Shah Alam, Selangor,

Malaysia.

ROSLAN BIN OTHMAN, Project Manager,

Petronas Gas Berhad, Kuala Lumpur, Malaysia.

MARTIN LEE KOON HENG. MBA BATH

University, Petaling Jaya, Selangor.

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