SAPIA Transportation Master Class

SAPIA Transportation Master Class

05 October 2021

Program

2

1.Welcome

2. Introduction

3. Presentations

Fuel Value Chain

Starting a Petroleum Transportation Business

Mr Selepe Phetla

Understanding the Legal Requirements and Technical Standards

Mr Bradley Chetty

4. Q&A and Discussion

5. Closing Remarks

Fuels value chain activities and infrastructure

3

The oil and gas industry is divided into three sectors: upstream, midstream and downstreambased on the type of activities. Each process consists of unique infrastructure to enable theproduction and distribution of liquid fuels

Starting and Running a Petroleum Transportation Business

Should I Start a Transport Business?

• Is there an opportunity/gap in the market?• Do I have the skills and competence to manage a typical

business and more so a transport operations?• Do I know what to look for when buying trucks & hiring

people? • Do I buy the trucks before a contract or not?

o How will the business be financed?o Are there opportunities for BBBEE Enterprise Development?o Do I know how I will acquire customers?o Do I have appropriate capital to start the business and sustain

it?

Lean Start-Up Canvas (vs Business Plan)

Problem Being Addressed• Top 3 problems that

exist for customers

Existing Alternatives• How are these problems

solved today by existing solutions / customers?

Solution Proposed• Top 3 features

Unique Value Proposition• Single, clear & compelling

message that states why you are different

• What value do we deliver?• Which problem is being

solved?• What needs are we meeting?• What is the minimum viable

product/service?

High Level Concept• List your X for Y analogy

Key Activities• What key activities do your

value propositions require?

• What customer relationships are required?

• How will you drive revenue streams?

Unfair Advantage• Can’t be easily copied or

bought

Customer Segments• Target Customers• For whom are we

creating value?• Who would be the

most important customer(s)?

• What are the customer archetypes (key characteristics)

Early Adopters• List the characteristics

of your ideal customers.

Key Resources & Partners• What key resources do you

require to deliver?• What are the distributions

channels• Who are the key partners

& suppliers?• Which key activities to

partners perform

Channels• Path to customers• Through which channels do

the customers want to be reached?

• How do other companies reach them?

• Which channel work best? Effective & efficient

Key Metrics• Key activities you

measure

Cost Structure• What are the most important costs inherent in the

business model?• Which resources are most expensive?• Which activities are most expensive?• Fixed and variable costs• Finance costs• Customer acquisition costs• Distribution costs, People, IT, etc.

Revenue Streams• For what value are our customers really willing to pay? • For what do they currently pay? • What is the revenue model? E.g., Fixed & variable or Fully variable• Sources of revenue, Lifetime Value• Revenue• Gross Margin

Ref: Lean Stack, (2021), Don't Write a Business Plan Create a Lean Canvas Instead, https://leanstack.com/leancanvas; Blank, S. (2013). Why the lean start-up changes everything. Harvard business review, 91(5), 63-72.

Advice: Don’t toss out your Business Plan, your backers/banker will want it. Use the Lean Canvas to refine the Business Plan

https://leanstack.com/leancanvas

Example of Lean Start-Up Canvas – ABC Fuelers

Problem Being Addressed• Poor customer service &

lack of expansion in remote areas (Limpopo, Free State, North-West & Northern Cape)

• Inflexibility in resources availability

• Low BBBEE Score to gain more business mining

Existing Alternatives• Big logistics companies

subcontract smaller companies for remote areas

• Big logistics companies help firms with BBBEE enterprise development

Solution Proposed• Fleet solution that

allow oil majors to expand their service stations in remote areas while enabling them to improve their BBBEE scorecard to be competitive to get contracts in mining areas

Unique Value Proposition• Good customer service with

flexibility to meet low & high demand. Minimizing the impact of high fixed costs for customers, while enabling them to be competitive to gain contracts in the mining space.

High Level Concept• Resource appropriately and

flexibly for great customers service while empowering oil companies

Key Activities• Relationship management &

understanding demand volumes of customers

• Resourcing to manage demand

• Executing loads as per customer demand

• Engaging customers’ customers for opportunities and improvements

Unfair Advantage• Partnerships with

suppliers that can enable flexibility at competitive costs

Customer Segments• Oil companies with less

footprint in “remote” areas

• Oil companies that would like to expand in mining business

Early Adopters• 2 Oil Companies that

have low market share in Limpopo & Mpumalanga with growth ambitions.

Key Resources & Partners• Dedicated trucks & drivers to

deliver base demand • Access to flexible trucks &

drivers for peak/ad hoc demand

• Fleet management & maintenance service provider with good footprint

Channels• Engage directly with

oil companies • Indirectly engage

mining companies for possible opportunities to link to oil companies

Key Metrics• Customer service

(dry tanks, on-time deliveries)

• Resource availability• Resource utilization

Cost Structure• Fixed cost for dedicated drivers• Fixed costs for customers & delivery management & business development• Running costs for running trucks (fleet management & maintenance, fuel costs,

etc.) • Finance costs for trucks • Variable costs for ad hoc resources for peak demand

Revenue Streams• (Seed funding to start-up to get truck(s) for base demand & initial running costs – supported by oil company

ESD) • Fixed & variable revenue for base/minimum demand. Ensure contract length is linked with period required

to finance capital costs of vehicle(s)• Variable revenue for variable demand – ensure alignment with variable costs

Typical Truck Running Costs

Cost Price (excl VAT) 1,412,475 Residual Value % 25%Finance Charge / Interest % 7%Depreciation yrs 5Insurance (% of Cost Price) 7.50%Licence 18228No. of Tyres 10Tyre Price - New 24,854 Tyre Price - Retread 3,615

PRIME MOVER COSTSCost Price (excl VAT) 2,200,000 Residual Value % 25%Finance Charge / Interest % 7%Depreciation yrs 10Insurance (% of Cost Price) 5.00%Licence 12192No. of Tyres 12Tyre Price - New 24,854 Tyre Price - Retread 3,615

TRAILER COSTS

Driver Monthly Costs 1 44,781 Assisstant Monthly Costs 0 16,192

Administration 173,891 Operational Costs 115,927 Other Fixed Standing Costs -

ON VEHICLE STAFF COSTS

ANNUAL FIXED OVERHEADS

Fuel Consumption litres/100km 55.00 Fuel Price cents/litre 1,240.60 Lubricants (as % of fuel cost) % 2.50%Maintenance cents/km 388.30 Other Variable Running Costs cents/km -

Variable Costs

Bulk of the costs included here refer to the RRFA VCS Schedule for Oct 2020

Comparing Truck Running Costs & Possible Revenue

Payload per delivery L 35,000 Loads per day # 1 Days Worked per Annum # 245.00 Volume per annum million litres ml 8.6 Price per litre delivered cents/litres 40.00 Total Revenue R 3,430,000 Margin per Year R 261,868.2

Fixed Cost Per Month R 165,000 Variable Costs cents/litres 1,300 Volume per annum million litres (ml) 8.58 Average Round trip distance km 449 Total Kilometres per Year km 110,000 Total Revenue R 3,410,000 Margin per Year R 241,868.2

Fixed Cost Per Month R 195,000 Variable Costs cents/litres 1,000 Volume per annum million litres (ml) 1,300.00 Average Round trip distance km 449 Total Kilometres per Year km 110,000 Total Revenue R 3,440,000 Margin per Year R 271,868.2

Revenue Option 3 - Fixed & Variable (higher fixed & lower variable)

Revenue Option 2 - Fixed & Variable (lower fixed & higher variable)

Revenue Option 1 - cents per litreAnnual Fixed Costs R cents/kmCost of Capital (Finance) 126,437 114.9 Depreciation 352,338 320.3 Insurance 215,936 196.3 On Vehicle Staff 537,372 488.5 Overhead - Admin 173,891 158.1 Overhead - Operational 115,927 105.4 Overhead - Other - - Licences 30,420 27.7 Total Annual Fixed Costs 1,552,321 Fixed Costs per Month 129,360

Variable Running Costs for 110,000 cents/kmFuel 750,563 682.3 Lubricants 18,764.08 17.1 Maintenance 427,130 388.3 Tyres 419,354 381.2 Other 0 - Total Variable Costs 1,615,811 1,468.9

Total Annual Costs for 110'000km/year 3,168,132 2,880.1

• Fixed costs are structural • Variable costs will

depend on volumes/trips & kilometers

• Generally, one can use fixed & variable (F&V) pricing method or can use cents/litre (cpl)

• Understand what may drive variables to understand possible impacts

• If there is higher risk of lower kilometers >> F&V

• If there is higher opportunity of higher volumes >> cpl

Know the Market & Customer(s)

• Do some level of due diligence • Understand the types of customers you service (e.g., what

do they use the product for)• Understand the demand drivers and patterns of your

customers (e.g., seasonal demand vs consistent demand)• Understand their requirements of suppliers (HSSE,

specifications, resources, training, etc.)• Understand the customers’ key orders qualifiers (what

would make a customer consider you) and order winners (what will make the customer choose you before someone)

Managing Transport Operations

• Be present, be hands on• Focus/choose on key/specific customers before diversifying –

this help in building competence & good reputation• Know the numbers

o Understand breakeven point – volumes / kilometerso Manage cashflow – paper profit vs money in the bank

• Be compliant – legal, customer (& customer’s customer, offloading point) & supplier (where you are loading) requirements

• Have the right people: skills, competence, attitude • Understand the contracts terms and where possible negotiate

Resource Appropriately

• Have the right, capable people – core skills & attitude – both in drivers, supervisors & support

• Have the right equipment to meet the demand and customer requirements o As mush as possible look out for customers & contracts before investing in

trucks• Deploy appropriate technology to manage basic requirements and

where possible give you competitive advantage • Avoid under-resourcing & over-resourcing – where possible have some

flexibility in increasing/decreasing both trucks and drivers to meet demand

• Contract smartly both with the customer and your suppliers o Where possible match capital outlay to customer contracts (volume & period)o Outsource appropriately to manage overall costs & service

Some Good Habits

• Hire the right people, and ensure they remain competent and engaged– manage & reward performance and continuous training

• Have/contract the right loads – size, frequency, revenue structure• Use the right technology (for compliance & competitiveness) • Ensure truck maintenance at the right cost• Do not use business money to fund a lifestyle• Stay up to date with the industry and customer trends – where

possible join an industry body such as Road Freight Association (RFA) o Resources for business plans o Resources for costing/revenue structure

Challenges for SMMEs working with Large Firms

• Be aware of the hurdles• Can’t plan for all of them

however understand which ones are key for your environment

• Develop competences to monitor and manage the possible challenges

• Your Lean Canvas should address key ones

Ref: FEM Research. Supplier Development Gap Analysis. SEDA

BBBEE Enterprise and Supplier Development (ESD)

• The extent to which companies procure from Empowered Suppliers, carry our supplier/enterprise development

• Carries significant number of BBBEE points• Key economic driver to assist in growing small

enterprises and job creation• Facilitate business linkage between SMMEs &

large businesses through increase participation• Legislated through BBBEE Policy – can give big

corporates competitive advantage• ESD has time limitations though – outgrow it!

The above is 2014 data from SEDA study, however there is still a gap.

Government Agencies Available

Effectiveness of government agencies in assisting small businesses in South Africa in 2019 (as percentage of adult population)

Ref: Bowmaker-Falconer & Herrington (2019), Igniting startups for economic growth and social change, Global Entrepreneurship Monitor South Africa (GEM SA) 2019/2020 report

Transporter MasterclassTechnical Standards and Legal Compliance – Dangerous Goods Vehicles

The objective of this presentation is to set minimum reasonable standards for road vehicles and the associated equipment transporting classified dangerous goods. This standard can be used to ensure that all such road vehicles are suitable from a statutory, operational and safety perspective prior to the vehicle being allowed to operate at the site and to provide a standard for on-going operational inspections of such equipment

Objective

ScopeThe scope of the document will apply to the following product being transported:

● UN1202 Automotive gasoline – All grades● UN1202 Diesel – All grades● UN1223 Illuminating kerosene

Loading of the product tank will take place by means of bottom loading.

Definitions Item Definition

ADR European Agreement Concerning the International Carriage of Dangerous Goods by Road.

API American Petroleum Institute

Battery isolator An isolator that isolates (or switched off) the electrical supply to all electrical circuits on the vehicle that are not required to receive a continuous electrical supply.

Isolators may be of:

A 4-pole type that will isolate both the "Live" and "Earth" circuits. Often called a double pole isolator

A 2-pole type that will isolate only the “Live” circuit. Often called a single pole isolator.

Bottom outlet valve Referred to as a BOV, often called an Emergency valve. This valve opens into the compartment and is self-closing by means of a spring-return. It seals the compartment off at tank floor level. In an accident, the external valve body can shear off, leaving the valve seat and product intact.

Dangerous goods Goods or commodities as classified in SANS10228 and carried in excess of the exempt quantities listed in SANS10231.

For the purposes of this document it is synonymous with the term products.

Drawbar trailer tanker A trailer drawn in such a manner that it transfers no load to the drawing vehicle.

Dry-break adaptor The "male" part of the coupling that when disconnected from the female, seals itself to prevent spillage of the liquid. Can also simply be referred to as a dry-disconnect adaptor

Dust-cap Relative to a loading or discharge adaptor. If applied as a closure (in terms of the relevant tank design standard), then thedust-cap will be of a liquid-tight sealing type.

Electrical bonding Equipment and fittings used to dissipate static electricity

Emergency release A mechanism used to manually shut, the product load/discharge control system including the BOVs simultaneously, in an emergency from a position of least danger.

Emergency vent Also referred to an Emergency Pressure Relief Valve (EPRV). A vent fitted to the tank that will allow out-breathing when abnormal pressure build-up is experienced inside the compartment such as when the tanker is involved in a fire or an accident that causes product surge. This vent will then release the pressure to atmosphere and prevent the tank from rupturing due to the internal pressure build-up exceeding the tank design pressure. It normally has a relatively large venting capacity and operates at higher pressures than the normal PV vent.


Freight carrier chassis A truck (the vehicle fitted with a drive engine) fitted with a product-carrying tank or other load body such as for example a flat deck, van body, tank or curtain-sided body.

Front interlink trailer A semi-trailer designed to draw a second semi-trailer in combination

Gland A fitting used to enter electrical cables into enclosures that will grip the cable seal the cable entry.

Gross capacity The overall capacity of the compartment or tank when filled to a point where there is no ullage space left above the liquid.

Interlink trailer combination Two semi-trailers operated in combination. The rear semi-trailer is coupled to the front semi-trailer in the same manner as the front trailer is coupled to the truck tractor.

Junction box An enclosure used to make electrical connections. It is usually water and dust proof and the metal ones are flame proof

Overfill sensor A sensor that will be triggered when the compartment reaches a pre-set level regarded as an overfill level. Depending on the type and installation configuration it could:

Provide a signal to the loading gantry controller to terminate loading orProvide a signal to the loading gantry controller to terminate loading and shut the vehicle BOV's at the same time.

Pup trailer A small trailer, usually with a fixed, non-articulating drawbar, drawn by a semi-trailer by means of a suitable hitch. It alwaystransfers load to the semi-trailer and is thus technically also a semi-trailer.

There is no definition for a Pup trailer in the Road Traffic Act.

PR Pressure relief

PV Pressure and Vacuum. Meaning it can breathe both in and out.

Rear interlink trailer A semi-trailer designed to be the rear semi-trailer in an interlink combination. It is no different to a normal semi-trailer.

Rigid tank truck A tanker that has a fixed tank fitted to a freight carrier chassis

Road tanker Any vehicle loading or discharging product in bulk at the site.

SANS South African National Standard. Issue by the SABS (South African Bureau of Standards)

Semi-trailer A trailer that transfers part of its mass to the drawing vehicle. It is drawn by a truck tractor.

Side under-run protection These are lightweight rails, parallel to the ground and fitted along the sides of a vehicle, to prevent pedestrians and cyclistsfrom being trapped in front of the wheels of the vehicle. The rails are normally fitted in areas where no other equipment is fitted such as fuel tanks that could serve the same purpose.


Truck tractor Vehicle used to draw a semi-trailer (or combination of tankers of which the one coupled to the truck tractor is a semi-trailer). Often incorrectly referred to as a "Horse" from the original term “Mechanical Horse”

Ullage The free- or vapour space above a liquid inside a tank compartment.

Vapour recovery system Abbreviated as VR system. A system that recovers vapours expelled from the compartment back to the storage plant when bottom loading a tanker (phase 1 VR) or vapours expelled from a receiving tank during discharge from the truck, passing the vapours back into the road tanker (Phase 2 VR)

Vapour transfer vent A pneumatically operated vent fitted to each compartment that opens during the loading or unloading operations. The vent is coupled to the VR collector so that vapour can flow from and to the VR collector.

On vehicles with no VR, the vent breathes to atmosphere if fitted.

Vehicle A road vehicle including a:

Truck TractorSemi-trailer tankerPup trailer tankerFront interlink tankerRear interlink tankerRigid tank truckFreight carrierDrawbar trailer tanker

These are all separate vehicles

VR Vapour recovery

VR adaptor The adaptor used to couple the vapour recovery hose to. By API standard, a 100mm cam-in-groove dry-disconnect adaptor with spring-return poppet

VR coaming vent A pneumatically operated vent located on the VR collector that will ensure that the system can vent to atmosphere if loading or unloading is done without coupling to a vapour recovery system.

VR collector A common pipeline or manifold used to connect all of the compartment VR vents to. The overturn valance is often used for this purpose (especially on automotive fuel tankers).

Technical Standards

General– The vehicle and equipment will be suitable for the product to be carried in all respects– Positioning of all equipment and fittings requiring operation and periodic inspection will not pose a safety risk to operating personnel.– The capacity of a tank or cargo containment area will be such that it will not be overloaded in terms of permissible axle mass loads or

vehicle/vehicle combination mass load when loaded to the intended levels/volumes/quantities with any of the products that the vehicle has been designed to carry.

– Care must be taken regarding the choice of and positioning of equipment to take cognisance of the product characteristics to ensure that the equipment remains fully functional under all operational conditions.

– All road tankers will be suitable for bottom loading at flow rates of up to 3000 litres per minute with manhole covers in a closed position and on a compartment-by-compartment basis.

General – Tanks– It is important to note that:– - A tank marked with a design standard of “ADRXXXX” is non-compliant as local law requires tanks to comply with the standards as

listed above.– - A tank marked with a design standard of SANS1518:2005 is non-compliant as this standard does not exist in practice.– - A tank marked with a design standard of SABS1518:1996 is non-compliant as the scope of the standard did not include automotive

gasoline, diesel and illuminating kerosene.

Technical Standards

General – Tanks– Tanks will comply with the four character tank code associated with the product carried as detailed in SANS1518 as revised.

The tank code used for all products except Class 2, consists of four characters as follows:• First character L or S• Indicates whether the product is a liquid or a solid– Second character G, 1,5, 2,65, 4, 10, 15 or 20– Indicates the pressure capability in Bar that the tank is constructed to. G indicates a tank for which the pressure capability is related to

the static pressure of the product and the loading and discharge pressures.– Third character A, B, C or D– Indicates whether the tank will be suitable for bottom filling/discharge or top filling/discharge and the number of required/allowable tank

closures below the product level.– Fourth character V, F, N or H– Indicates the type of venting requirements

Compartment/tank loading capacities will be such as to allow for:– - Sufficient ullage in keeping with the required maximum filling levels required by specific products.– - efficient operation of overfill protection systems– - Prevent ullages of greater than 20% of the compartment gross volume

Technical Standards

Tank Code example

Technical Standards

Vehicle design standards– The applicable tank design standard will be displayed on a clearly visible tank manufacturer’s plate.

This section is only applicable to South African-registered tanks

– Vehicles built prior to August 2001 did not have to legally comply with a tanker design standard. – Unless otherwise specified, for such vehicles, compliance will be required either in terms of:– SABS 1398, applicable to vehicles carrying UN1203 (Automotive gasoline and Avgas), UN1202 (Diesel), UN1223 (Illuminating

Kerosene) and UN1863 (Turbine fuel/Jet A-1)Or

SANS1518 if upgraded and/or recertified accordingly.

SANS1518 became effective in April 2004 thus replacing SABS1398 at that stage. For information purposes, the following SANS1518versions have been published (at the time of writing this document):

– SANS1518:2004 April 2004– SANS1518:2008 April 2008– SANS1518:2011 March 2012– SANS1518:2018 October 2018

Technical Standards

Manhole covers - Tanks– Each compartment will be fitted with a manhole cover of at least a 500mm diameter. The closing mechanism of the hinged cover will be

such as to ensure effective sealing during transit and a roll-over incident.• Please note that the manhole cover may incorporate an openable hinged fill hatch. Such a fill hatch cover may be less than 500mm in diameter (the

usual industry standard is 10"/250mm)

– Any hinged opening must be provided with an effective seal that will remain liquid tight during a bottom-loading overfill and/or roll-over situation

– A hinged manhole cover opening will be provided with a means of relieving any internal compartment pressure before complete opening can be achieved.

– The mechanism used will prevent the complete undoing of the closing mechanism or part thereof in a single action. It will force the operator to make the opening in either two separate actions or in a gradual manner in order to allow any internal pressure build-up to be first relieved before the cover is opened fully.

– Hinged and openable manhole covers or fill hatches will be provided with a means of fitting a security seal when closed. One will not be able to open the manhole cover or fill hatch without breaking the seal.

Compartment venting – Tanks– Compartment venting requirements will be in compliance with the tank code requirements unless otherwise indicated.– breathing to the compartment resulting from product expansion and contraction. The vent will be equipped such as to prevent product

from leaking from the vent during a roll-over.– The PV vent will be fitted with a flame trap mechanism.

Technical Standards

Compartment venting – Tanks– Pressure setting on PV vents will be a minimum of 7 kPa in order to allow for effective operation of the VR system (if set too low,

vapour will be exhausted via the PV vent to atmosphere as opposed to being exhausted into the VR system. – Each compartment must be fitted with sufficient emergency pressure venting capacity in accordance with the tanker design standard.

The pressure relief valve setting will not exceed the plated maximum working pressure of the tank.Overfill Protection

– Each compartment must be fitted with an electronic overfill sensor.– Electronic sensors will comply with SANS1518 (EN13922)– The overfill sensor will be active whilst the compartment is being bottom loaded. Such activation will occur automatically by means

activating the "Load" operation.– No by-pass or over-ride facility may be provided to isolate or de-activate the overfill sensor during loading.– During bottom loading, all sensors in all tank compartments will be active, regardless of which compartment is being loaded.– Activation of one sensor in any compartment will prevent continued loading of any other compartment until the overfill condition has

been cleared.– The overfill sensor will be set at a trigger level to allow for at least 230 litres of remaining ullage after sensor trigger, regardless of

compartment gross volume. This is to allow for sufficient time for the system to shut down without resulting in a product spillage.– The trigger level must be at least 25mm above the product surface at the maximum allowable payload volume.– Electrical bonding will take place through the 10-pin 4J API optic socket installed in accordance with EN13922.

Technical Standards

Technical StandardsManhole covers / Spill containment area / Handrail

Compartment Venting Electronic Overfill Sensors

Vapour recovery– Each compartment will be fitted with a vapour vent that will open automatically during the bottom loading and discharge operation. such

vapour vent will be of sufficient venting capacity at the maxim product loading rates so the pressure venting setting of the EPRV for the compartment is not exceeded. The compartment bottom valve for a compartment will not open until the vapour vent for the compartment has opened.

– At the termination point of the vapour collector, a 100mm cam-in-groove VR adaptor will be fitted. The adaptor will be equipped with a spring return poppet that will be pushed open by the VR coupler fitted to the VR hose on the loading gantry. The VR adaptor will be fitted with an interlock that will close the VR Coaming vent to atmosphere when the VR coupler is attached. It will also be equipped with a suitable dust-cap.

– The position of the VR adaptor will be at the left side of the vehicle (either centrally to the rear of the bottom loading adaptors, ahead of the rear axle/axle unit of the vehicle or the rear of the rear wheels) and at a height of 460 mm (min) to 1220 mm (max).

SANS1518 requires the VR drybreak adaptor to be fitted adjacent to the rearmost API bottom loading adaptor (in the API bottom loading

envelope).

– A VR coaming vent will be fitted to the vapour collector. This vent will allow vapour venting to atmosphere when bottom loading at a non-VR loading facility and when discharging the tank. When the VR coupler is coupled to the VR adaptor, this vent is closed to atmosphere by means of the interlock, thus preventing vapours from being released into the environment.

– The VR interlock will be configured in such a manner as to only provide a permissive signal to the API optic socket for the overfill prevention system once the vehicle park brake has been applied.

Technical Standards

Vapour recovery

Technical Standards

Bottom loading and discharge adapters– Each loading point will be fitted with a 100mm API dry-break adaptor.– Any loading adaptor fitted will be equipped with a dust-cap of a "sealing" type. The dust-cap will be attached to the discharge adaptor

by means of a suitable retaining mechanism.The standard associated with tanker of which the third character in the 4-character tank code is a “B”, requires three closures on a pipeline;

the BOV being one and the dry-break adaptor being one. If the dust-cap is required to fulfil the role of the third closure, it must close and

seal positively to a liquid-tight condition. Only where another means of providing an efficient third closure is employed, may the dust-cap be

of a "non-sealing" type. In order to avoid confusion, especially during inspections, it is recommended to always use a proper "sealing" dust-

cap.

– The loading position will be on the left side of the vehicle (passenger side of a right-hand drive vehicle).– All loading adaptors will be installed in such a position to allow for safe and effortless coupling of the loading arm within the

recommended API envelope. (Height to adaptor centreline – 1220 mm maximum and 460 mm minimum)Bottom outlet valves and pipelines

– Each compartment will be fitted with a 100mm bottom outlet valve suitable for bottom loading at the required rates, either directly to the compartment floor or sump or to a dummy sump where such a design is required.

– The bottom valve will close automatically when the control air supply is terminated and an overfill sensor is activatedThe BOV:– Shall be self-re-closing (i.e., if the means of actuation is removed, the valve will close – Shall open into the tank compartment– Shall be provided with a shear section in the valve body that will ensure that the valve remains closed and leak-tight in the event of an

internal impact internal impact.

Technical Standards

Bottom loading and discharge adapters

Technical Standards

Bottom outlet valves and pipelines– The bottom valve will be fitted with an internal hood that will prevent product from spraying upwards in an un-controlled manner– Bottom loading pipelines will be of 100mm nominal inside diameter

Valve control system – Tanks– BOV’s for bottom discharge or bottom loading will be controlled pneumatically (or electro-pneumatically).– BOV operating systems will be fitted with at least one effective emergency release mechanism. The emergency release will be installed

so that it can be easily operated from a position of minimum risk. (Normally the side of the vehicle opposite to the side where loading or

discharge takes place). The position of the emergency release mechanism/s will be clearly indicated by a suitable label– The control system for remote operating mechanisms will be housed in a suitable, self-draining. sealable enclosure in close proximity

of the loading/discharge adaptors, on the left side of the tanker. If for practical reasons this is not possible, mechanisms will be provided that will prevent inadvertent operation of and tampering with the valve controls. In such cases, methods for sealing will be provided that will prevent operation of the controls without destruction of the seals

– A drive-away interlock will be provided either on the loading adaptor or the enclosure door used to access the loading adaptor. The interlock will ensure that the vehicle cannot be moved or driven away whilst the loading hose is coupled to the vehicle.

– The BOV control system will be fitted with a "Load" (or Master) button. If this button has not been activated, no individual compartment BOV controller will operable either

Technical Standards

Technical Standards

Bottom outlet valves and pipelines Valve Control – Electro - pneumaticValve Control – Electro - pneumatic

Tank top access – Tanks– (It is not necessary for the tanker to be equipped with a tank-top access ladder nor a handrail as facilities at the inspection and loading

sites allow for safe tank-top access)

– The area on top of the tank must be kept free from obstructions and tripping hazards and the walking surface will be of a non-skid type.– A clear walking area must be provided and it will not be necessary for the operator to step on equipment (for example manhole covers,

sensors or vent) whilst on the tank top– The design of the walking area will be such that the shoes of the tank-top operators will always be in contact with the walkway non-skid

feature– Where a handrail is provided that also acts as a manhole locking bar and requires to be raised to perform top loading, the handrail will

be hinged on the right side of the tank top (meaning it will raise towards the right side) and will not impede any of the loading gantry equipment or the operation. Such a handrail will be provided with a suitable lock that will secure it firmly in an upright position when raised.

– Raising of the any common manhole locking device or handrail will not be used to activate the park brake. It will however be fitted with an interlock that will require the park brake to be applied before such locking device or handrail can be raised and the park brake will not be released until the device has been lowered and stowed

Spill containment – Tanks– The area around the manhole covers and vents on the top of the tank must be completely enclosed along the sides, front and rear in

order to form a liquid tight spill containment dam, more commonly known as a spill box.– The spill box will be provided with suitable drain pipes, preferable at the front and rear, extending down to the bottom of the vehicle

allowing drainage in a safe area (i.e. away from the engine, exhaust pipe, electrical fittings and junction boxes and running gear). The material used for flexible tank-top drains must be compatible with the products carried.

Technical Standards

Tank top access – Tanks

Technical Standards

Electrical– Electrical installations and wiring will conform to the requirements of at least SANS1518-2004– Electrical cabling will be suitable for the application, environment and the product carried and will be adequately supported and

protected.– All electrical connections will be made in suitable junction boxes with cable entries through suitable glands.– Truck tractors and rigid tank trucks will be fitted with a suitable battery isolator switch as close as practically possible to the batteries.

The means of actuating the switch must be in an easily accessible position and will be clearly marked and the "On" and "Off" positions will also be clearly indicated. The switch may be provided with an actuation device fitted directly to the body of the switch or mounted remotely

Electrical Bonding – Tanks– Bonding between the loading gantry and the vehicle will take place via the 4-pin optic socket.

The requirement below will apply only to a site where no gantry-based electronic earth monitoring takes place through the 4-pin optic socket

– A sturdy brass earth lug will be securely bolted to the tank frame in the proximity of the bottom loading/discharge adaptor positions. The lug will be used to clamp a crocodile-type earth clamp to for electrical bonding purposes whilst loading. An aluminium or steel lug may also be welded to the tank frame. The surface of the lug must be free from paint. The position of the earth lug will be clearly indicated by means of a suitable label

– For tanks mounted on rubber mounting pockets, at least one suitably sized bonding cable will be fitted between the tank frame and the chassis

– Tank compartments will be fitted with an internal vertical static conductor extending from the tank floor to tank roof

Technical Standards

Technical StandardsOptic Socket Crocodile type earth clampElectric bonding - Sturdy

brass lug

Electrical– A four pole (also called double pole) isolator or a two pole (also called a single pole) isolator may be used. In the case of a two-pole

isolator, it must isolate the “Live” supply from the battery. The switch will be of IP65 rating and if not housed inside the battery enclosure, the electrical connections will be protected to IP54.

Vehicles built to SANS 1518-2008 and later must be fitted with a remote actuation device inside the cab. Such vehicles do not require an

external activation device, but this may be fitted as an option.

– All external circuits requiring electrical power (such as an electronic meter register) whilst the battery isolator is in the "Off" position, will be provided with suitable protection through a fuse or a re-settable breaker.

– The truck batteries will be housed in a suitable battery enclosure fitted with a cover made of a non-conductive material (i.e. it will not cause sparking if it makes accidental contact with the battery terminals.) or it needs to be lined on the inside with non-conductive material.

Miscellaneous and loose equipment– Each vehicle (excluding a truck tractor), will be equipped with two suitable wheel chocks. Wheel chocks will be made from a non-

sparking material.– Each truck tractor or freight carrier chassis will be equipped with a front charge line with an “F+J” female coupler. This connection will

be used to supply plant air to the vehicle should it run out of air in the loading bay and for removing it from the bay should it fail to start. The charge line or position thereof will be easily visible and accessible.

– All vehicles will be fitted with suitable side under-run protection devices where practical. The purpose of the side under-run protection is to fend pedestrians and cyclists off and away from the wheels of the vehicle. Equipment fitted to the chassis may be used to fulfil this purpose.

Technical Standards

Technical StandardsIn-cab isolator switch

Outside-cab isolator switch

Isolator switch signage

Technical Standards

Electrical isolator –2 pole solenoid

Front charge line –F&J Coupler

Side underrun protection bar

Miscellaneous and loose equipment– All loose or removable equipment, such as ladders, hoses and chocks, will be provided with proper stowages and means of retention.– A vehicle will be fitted with effective mudguards over all wheel positions. If a truck tractor does not have mudguards over the drive

wheels, the semi-trailer will have the mudguards fitted for that position and vice versa. Suitable mud-flaps (or stone guards fitted) will be fitted behind the rearmost wheels of each axle or axle unit.

– The truck exhaust system will be properly shielded to prevent any product spillage from coming into direct contact with the exhaust. The exhaust outlet will also be positioned such that is not within one meter from any product outlet or in a hazardous area.

Note that some truck exhaust mufflers do not require additional shielding as they are effectively shielded due to the construction and remain

at relatively low temperatures during operation

– A fire- and spill-protection shield, made of metal or other suitable non-absorbent material, shall be fitted at the rear of the cab to protect the cargo from a fire in the engine compartment, and prevent product spillage from entering the engine compartment.

– If equipment fitted immediately to the rear of the cab fulfils the same role, the shield may be omitted.– Where interlocks are fitted, they may not interfere with the vehicle braking system. Interlocks may be used to release a locking bar only

once the park brake has been applied or to prevent the park brake from being released before stowage of an item has taken place, but they may not be used to apply the brake.

– Each vehicle will be fitted with a reverse buzzer emitting an intermittent beep sound at a minimum sound level of 85 decibels– The required Dangerous Goods documentation holder will be securely fitted in an easily visible and accessible position inside the truck

cab.

Technical Standards

Fire extinguishers– Fire extinguishers will be housed in sturdy quick-release type holders.– Fire extinguishers will be fitted with service decals in a position where they can be observed without having to remove the extinguisher

from its holder.It is recommended that the service decal be applied to the shoulder (the rounded area between the side and neck) of the extinguisher and

not the side and definitely not to the bottom

– Placement of fire extinguishers will be such as to allow easy accessibility and in a position of least danger in the event of a fire.– An In-cab extinguisher must be positioned such that it can be reached by the driver whilst seated in the driving position and must be

retained in such a way that it cannot accidentally be dislodged.– The fire extinguishers will be suitable for fires of types A, B and C– Vehicles will be fitted with fire extinguishers as follows:– A rigid tank truck:

• 1 x 2kg powder type extinguisher inside the truck cab• 2 x 9kg powder type extinguishers fitted externally

– A trailer: 2 x 9kg powder type extinguishers– A truck tractor

• 1 x 2kg powder type extinguisher inside the truck cab• 1 x 9kg powder type extinguisher fitted externally

Technical Standards

Plating – TanksThe tank will be fitted with the manufacturer's plate/s as required by the tanker design standard indicating amongst others the;

– Design standard– Tank code *– Manufacturer's serial number– Manufacturing date– Compartment gross capacities– Test pressure– Last test date

Note: Tanks built to SABS1398 did not require a tank code. From the publication of SANS1518:2018, the addition of a tank code to an

SABS1398 tank is allowed.

Also note that information can be displayed on more than one plate.

– A compartment load plate will be fitted in close proximity to the loading or discharge position and in an easily readable position. The load plate will show the maximum permissible volume (in litres) that can be loaded into the compartment taking into account the minimum ullage requirements for the tank.

Note: It is not the Gross capacity of the tank.

– All plates will be placed in such a position that they are easily accessible and can be easily read

Technical Standards

• Signage and Placarding– Indication of the position and purpose of the following items must be clearly indicated by means of appropriate signage:

• Battery isolation devices• Bonding points• Emergency release devices

– The tank will be fitted with the required “No smoking”, “No open flames” and “No cell phone” signs at both sides and the rear

– Each compartment loading point will be labelled to indicate:• The compartment number on tanks with individual loading lines per compartment• The relevant manifold product type for tanks with common manifold

– On tanks fitted with manually-opened isolation valves on a commonised manifold, each isolation valve will be clearly labelled with the respective compartment number.

Technical Standards

Signage and Placarding

Technical Standards

Chapter VIII of the Regulations:Transportation of Dangerous Goods and Substances by Road

Definitions:– “competent authority” means the competent authority listed in supplement 1 of the code of practice SABS 0229 “Packaging of

dangerous goods for road and rail transportation in South Africa”;

– “consignor” means the person who offers dangerous goods for transport in a vehicle referred to in regulation 274 (1), and includes the manufacturer or his or her agent, duly appointed as such;

– “consignee” means the person who accepts dangerous goods which have been transported in a vehicle referred to in regulation 274 (1);

– “dangerous goods inspector” means a person appointed as such under section 55 of the Act;– “emergency action response system” means a system designed to enable emergency crews arriving on the scene of an incident to

determine, from coded placarding on the vehicle, or failing that, from the Tremcard or dangerous goods declaration, the identity of the cargo carried, the nature of the hazard presented and the emergency action to be taken to neutralize the danger, and is as prescribed in code of practice SABS 0232-1 “Transportation of dangerous goods Emergency information systems”, Part 1: “Emergency

information system for road transportation” and code of practice SABS 0232-3 “Transportation of dangerous goods - Emergency information systems”, Part 3: “Emergency action codes”;

– "exempt quantities” means those quantities that are exempt in accordance with code of practice SABS 0232-1 “Transportation of

Dangerous Goods – Emergency information systems”;

The National Road Traffic Act 93 of 96


Definitions: – “incident” means an unplanned event during the transportation or storage of dangerous goods which involves leakage or spillage of

dangerous goods or risk thereof;– “multiload” means more than one type or hazard class of dangerous goods or substances carried together;– “premises” means land or any building or other structure and includes any train, boat, ship, aircraft or other vehicle;– “qualified person” means a person trained to perform any specific task, nominated by the operator, consignor or consignee under

regulation 277; and– “Tremcard” means the transport emergency card listing the hazards and emergency information for a material being transported for

use by the driver during an incident, or by the emergency services, if required;– “transport emergency card” means a card which can either be generated from the European Council of Chemical Manufacturers’

Federation system, or in accordance with SANS 10232-4, listing the hazards and emergency information for a material being transported for use by the driver during an incident, or by the emergency services, if required.



274. Application1. Subject to sub regulation (2), this Chapter applies to all vehicles registered in the Republic, wherever they may be, and to all vehicles

other than those registered in the Republic, whenever they are within the Republic, in or on which dangerous goods are transported, and to such dangerous goods.

2. These regulations do not apply in respect of dangerous goods which are transported in quantities which do not exceed the exempt quantities



275. Transportation of dangerous goods prohibited1. No person shall operate on a public road any vehicle in or on which dangerous goods is transported, unless such dangerous goods is

transported in accordance with this Chapter: Provided that—a) dangerous goods which is required under this Chapter to be transported in a vehicle in respect of which standard specification SABS 1398 “Road tank vehicles for petroleum based flammable liquids” or SABS 1518 “Transportation of dangerous goods – design requirements for road tankers”, apply—

(i) may be transported in such a vehicle; and(ii) shall be so transported in accordance with the said appropriate standard specification if the vehicle in which the said dangerous goods is being transported was registered for the first time on and after 1 October 2001; and

b) vehicles carrying dangerous goods in respect of which a placard is required to be fitted to such vehicle, may be fitted with, but shall after 1 October 2001 be fitted, with the appropriate placards prescribed in code of practice SABS 0232 “Transportation ofdangerous goods – Emergency information systems”, Part 1: “Emergency information system for road transportation”.



277. Duties of operator, driver, consignor and consignee1. The operator, driver, consignor and consignee shall, subject to any provision to the contrary contained in this Chapter, comply with the

requirements with respect to the transportation of dangerous goods in or on a vehicle on a public road, as determined in the standard specifications and codes of practice referred to in regulation 273A.

2. The operator, consignor or consignee, as the case may be, shall nominate a qualified person in the circumstances and with respect to the tasks pertaining to the transportation of dangerous goods, as determined in the standard specifications and codes of practice referred to in regulation 273A.

3. Subject to the provisions of sub regulation (2), the operator, consignor and consignee may nominate a qualified person for any purpose deemed necessary by that operator, consignor and consignee with relation to the transportation of dangerous goods.



278. Dangerous goods to be compatible– The consignor shall ensure that a multiload of dangerous goods transported on a vehicle is compatible as prescribed in Annex D to

code of practice SABS 0232-1 “Transportation of dangerous goods – Emergency information systems”, Part 1: “Emergency information

system for road transportation”.

280. Driver to undergo training1. An operator shall ensure that after a date to be determined by the Minister by notice in the Gazette, the drivers of the vehicles of which

he or she is the operator that has to obtain a professional driving permit as referred to in regulation 115 (1) (f), undergo training at an approved training body to comply with regulation 117 (e).

2. Each approved training body shall submit a syllabus for the training of the drivers referred to in sub regulation (1) to the Shareholders Committee for approval, and resubmit such syllabus for approval, within 90 days after relevant legislation or SABS specifications, influencing the training material, have been amended.



280. Driver to undergo training…cont…3. The syllabus for the training of drivers shall contain at least—

a) the interpretation and implementation of the instructions on a Tremcard;b) general duties of the driver before proceeding on a route concerning, specifically, but not limited to, the condition of the vehicle, the

documents to be kept in the vehicle, instructions regarding the route to be taken, warning signs and warning devices to be displayed or stored in the vehicle, the correct type and number of fire extinguishers to be fitted to the vehicle and protective clothing to be used;

c) general behaviour expected of the driver on the route, amongst other things, planning of stops for deliveries or checking of the tyres and vehicle, and procedure to be followed in the event of stops, periods of driving allowed, action to be taken in the event of an incident occurring;

d) general procedure to be followed by the driver on reaching his or her destination; ande) general procedure to be followed when loading or offloading dangerous goods.

4. A training body referred to in sub regulation (2) shall issue drivers with a certificate for the successful completion of training for purposes of regulation 117 (e).

5. An operator shall ensure that a driver undergo theoretical and practical training at an approved training body for the specific class of dangerous goods that he or she shall be responsible for and practical training by an accredited body for the specific type of vehicle that he or she shall drive.



281. Documents to be held by driver1. The driver of a vehicle referred to in regulation 274 (1) shall ensure that such Tremcards and dangerous goods declarations as are

required in terms of this Chapter, and which pertain to the dangerous goods carried on such vehicle are held in the designated space in the cab of that vehicle at such time as dangerous goods are being transported in such vehicle. (2) The driver of a vehicle referred to in regulation 274 (1) shall produce on demand—

a) a professional driving permit, if applicable; andb) deleted by Gov Gaz 25484 of 25 September 2003c) the documents referred to in sub regulation (1), whenever he or she is operating a vehicle referred to in regulation 274 (1).


Normative references– National Road Traffic Act - Act 93 of 1993 as amended– SABS 1398– SANS 1518– SANS 10231– SANS 10232

– Energy Institute - Code of Practice for Petroleum Road Tanker Vapour Collection Systems and Equipment used in Unloading Operations.

References

Informative references