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BUSINESS MODEL
Private Initiative on Development and
Implementation of On-The-Road Bulk Carrier
HaulageTank 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
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
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
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.
Brief on Core Capabilities
This private initiative is undertaken by a consortium of core capabilities led by Ever-Red Consolidated Sdn Bhd which
prepared the business model for development and implementation of on-the-road food grade bulk carrier cleaning and
sanitization 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 the
organization 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 of
project management and construction. Between them, the experience encompasses both telecommunication, oil and gas
industries and being also human resource solution provider, the project management, design and implementation shall be
achieved.
With regard to equipment, facility and management resources, our team consists of equipment designer (with design
registered 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 be
Standard Industries Research Institute Malaysia (SIRIM) which has worldwide recognition and therefore, will assist
to alleviate Malaysia up to gold and global standard in the palm oil arena.
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
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.
2. Introduction
Why DoThe Palm Oil Industry NeedThe Change Of Methodology ForTank 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.
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 ofAcceptable 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
Introduction (Continued)
Present day methodology in management, upkeep and hygiene of on-the-road bulk carrier tank interior is no longer relevant
to the betterment of our nation‟s palm oil industry. We believe continuation of outdated practices will undermine confidence
in 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 grossly
failing to meet international standards.
2. Managing the environment is haphazard because standards for the discharge of effluent to the environment are largely
ignored.
3. The present day manual methodology have to a certain extent disregarded safety and health as workers are required to
be 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 the
product image.
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
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
Summary of Palm Oil Industry Flow (Continued)
Palm Oil Export Terminals and Refinery Locations
Summary of Palm Oil Industry Flow (Continued)
Palm Oil Export Terminals and Refinery Locations
Summary of Palm Oil Industry Flow (Cont’)
Palm Oil Export Terminals and Refinery Locations
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
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.
In the domestic market, our on-the-road bulk carrier
transportation sector cleaning modus operandi is stone age
compared to the USA.
However our standards are acceptable if compared to
what most Western countries were doing some 20 years
back.
In Malaysia, there are three major food grade industries
that require use of on-the-road bulk carrier as
transportation 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
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.
Conclusion
The project provides Malaysian palm oil Industry‟s fleet of bulk carrier tanker including industry storage tanks with leading
edge technology for their upkeep, hygiene and cleanliness of interior. This is achieved with standardized wash protocols based
upon documented food safety systems, risk analysis and HACCP principles.
Furthermore, implementation and operations by an independent party will enhance credentials of the process. Consistency of
standards will be upheld and with information technology, traceability of tanker wash utilization is enabled for efficient and
effective management.
There will also be control of standards in regard to interchangeability from one food grade to another for the bulk carrier
which 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 would
place us as a respected nation in terms of environmental responsibility and at par with the more “green” and advanced
countries.
Finally, our methodology can also be applied to other food grade sectors which would create employment opportunity across
the relevant logistic operations and with presence of a “Code of Ethics” and also through automated, safe and hygienic
methods, there is assurance of product quality. Thus, further securing public trust and assisting in penetration of global
markets.
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.
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.
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.
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.
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
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.
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
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.
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
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.
Internet
Certificates of compliance – Verification and Lifecycle
ISSUING 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
Internet
Certificates of compliance – Verification and Lifecycle
Validating 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
Internet
Certificates of compliance – Verification and Lifecycle
Validating 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
Business Model for On-The Road Palm Oil Tank Interior Cleaning
Proposed Model - Information Technology and Operations Flow (Continued)
Verification ofAuthenticity 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.
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
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.
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.
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
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.
Bulk Carrier /Tanker
1600F
ControlPoint – 2a
During wash, water temperature
at drain outlet must be flowing
at 1600F
Sensor
Probe
ControlPoint - 2
Water temperature at drain outlet
must reach1600F before the 15
minutes wash cycle begins
ControlPoint - 1
In-flow water temperature at
reservoir must reach 1800F
before allowing it to flow into
tanker
1800F
Sensor
Probe
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
Sensor
Probe
ControlPoint – 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
Sensor
Probe
ControlPoint – 1a
To sense the type of wash
liquid in use
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.
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).
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.
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.
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 40tStates
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)
Size of Facility and Estimated Cost (Continued)
The Size ofThe 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.
Size of Facility and Estimated Cost (Continued)
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
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 PERYEAR
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
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.
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
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
Contributors
 MOHAMMAD ZAMBREE BIN DIMAN
Independent Consultants, Director, Ever-Red
Consolidated Sdn. Bhd.Author of Proposal For
Food Grade Bulk CarrierTank 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 MUARRIFTAJUDDIN BINABDUL
MUTALIB, Accounting Consultants, Former MD
RedSea Engineering (M) Sdn. Bhd. Kuantan,
Pahang, Malaysia.
 CAPT ® SHAHARUDIN BINARRIFFIN, 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 Hashimah
Binti Ismail, Head, Sabariah Binti Marzuki, Shah
Alam, Selangor, Malaysia.
Contributors (Cont’)
 STEPHENYAP CHIN KEONG, Principal
Consultants, Quality Partnership Sdn. Bhd. Kuala
Lumpur Malaysia.
 Dr. MICHAEL LOHTOON SENG (PhD),Author,
Certified Productivity Specialist,Trainer, Principal
Consultant IBM, Singapore.
 RICHARD HOH SEE KHIN, IT SystemAnalyst,
Data Base Designer,ARD Consulting Sdn. Bhd.,
Petaling Jaya, Selangor, Malaysia.
 YAKOV REZNIKOV, Director, KMT International
Inc. LosAngeles, California, USA.
 NICK IM SOO PARK,Vice President, MegaMacs
Korea, Busan, South Korea.
 Datok Ir. ZAINI BIN DIMAN,Vice President,
Telecom Malaysia Sdn. Bhd. ShahAlam, 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, ResearchAssistant
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.
Bulk Carrier Tank Cleaning Proposal
Bulk Carrier Tank Cleaning Proposal
Bulk Carrier Tank Cleaning Proposal
Bulk Carrier Tank Cleaning Proposal
Bulk Carrier Tank Cleaning Proposal
Bulk Carrier Tank Cleaning Proposal
Bulk Carrier Tank Cleaning Proposal
Bulk Carrier Tank Cleaning Proposal
Bulk Carrier Tank Cleaning Proposal
Bulk Carrier Tank Cleaning Proposal
Bulk Carrier Tank Cleaning Proposal

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Bulk Carrier Tank Cleaning Proposal

  • 1. BUSINESS MODEL Private Initiative on Development and Implementation of On-The-Road Bulk Carrier HaulageTank 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
  • 2. 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
  • 3. 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
  • 4. 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.
  • 5. Brief on Core Capabilities This private initiative is undertaken by a consortium of core capabilities led by Ever-Red Consolidated Sdn Bhd which prepared the business model for development and implementation of on-the-road food grade bulk carrier cleaning and sanitization 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 the organization 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 of project management and construction. Between them, the experience encompasses both telecommunication, oil and gas industries and being also human resource solution provider, the project management, design and implementation shall be achieved. With regard to equipment, facility and management resources, our team consists of equipment designer (with design registered 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 be Standard Industries Research Institute Malaysia (SIRIM) which has worldwide recognition and therefore, will assist to alleviate Malaysia up to gold and global standard in the palm oil arena.
  • 6. 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
  • 7. 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.
  • 8. 2. Introduction Why DoThe Palm Oil Industry NeedThe Change Of Methodology ForTank 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.
  • 9. 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 ofAcceptable 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
  • 10. Introduction (Continued) Present day methodology in management, upkeep and hygiene of on-the-road bulk carrier tank interior is no longer relevant to the betterment of our nation‟s palm oil industry. We believe continuation of outdated practices will undermine confidence in 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 grossly failing to meet international standards. 2. Managing the environment is haphazard because standards for the discharge of effluent to the environment are largely ignored. 3. The present day manual methodology have to a certain extent disregarded safety and health as workers are required to be 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 the product image.
  • 11. 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
  • 12. 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
  • 13. Summary of Palm Oil Industry Flow (Continued) Palm Oil Export Terminals and Refinery Locations
  • 14. Summary of Palm Oil Industry Flow (Continued) Palm Oil Export Terminals and Refinery Locations
  • 15. Summary of Palm Oil Industry Flow (Cont’) Palm Oil Export Terminals and Refinery Locations
  • 16. 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
  • 17. 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.
  • 18. In the domestic market, our on-the-road bulk carrier transportation sector cleaning modus operandi is stone age compared to the USA. However our standards are acceptable if compared to what most Western countries were doing some 20 years back. In Malaysia, there are three major food grade industries that require use of on-the-road bulk carrier as transportation 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
  • 19. 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.
  • 20. Conclusion The project provides Malaysian palm oil Industry‟s fleet of bulk carrier tanker including industry storage tanks with leading edge technology for their upkeep, hygiene and cleanliness of interior. This is achieved with standardized wash protocols based upon documented food safety systems, risk analysis and HACCP principles. Furthermore, implementation and operations by an independent party will enhance credentials of the process. Consistency of standards will be upheld and with information technology, traceability of tanker wash utilization is enabled for efficient and effective management. There will also be control of standards in regard to interchangeability from one food grade to another for the bulk carrier which 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 would place us as a respected nation in terms of environmental responsibility and at par with the more “green” and advanced countries. Finally, our methodology can also be applied to other food grade sectors which would create employment opportunity across the relevant logistic operations and with presence of a “Code of Ethics” and also through automated, safe and hygienic methods, there is assurance of product quality. Thus, further securing public trust and assisting in penetration of global markets.
  • 21. 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.
  • 22. 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.
  • 23. 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.
  • 24. 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.
  • 25. 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
  • 26. 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.
  • 27. 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
  • 28. 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.
  • 29. 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
  • 30. 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.
  • 31. Internet Certificates of compliance – Verification and Lifecycle ISSUING 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
  • 32. Internet Certificates of compliance – Verification and Lifecycle Validating 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
  • 33. Internet Certificates of compliance – Verification and Lifecycle Validating 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
  • 34. Business Model for On-The Road Palm Oil Tank Interior Cleaning Proposed Model - Information Technology and Operations Flow (Continued) Verification ofAuthenticity 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.
  • 35. 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
  • 36. 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.
  • 37. 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.
  • 38. 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
  • 39. 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.
  • 40. Bulk Carrier /Tanker 1600F ControlPoint – 2a During wash, water temperature at drain outlet must be flowing at 1600F Sensor Probe ControlPoint - 2 Water temperature at drain outlet must reach1600F before the 15 minutes wash cycle begins ControlPoint - 1 In-flow water temperature at reservoir must reach 1800F before allowing it to flow into tanker 1800F Sensor Probe 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 Sensor Probe ControlPoint – 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 Sensor Probe ControlPoint – 1a To sense the type of wash liquid in use
  • 41. 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.
  • 42. 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).
  • 43. 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.
  • 44. 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.
  • 45. 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 40tStates 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)
  • 46. Size of Facility and Estimated Cost (Continued) The Size ofThe 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.
  • 47. Size of Facility and Estimated Cost (Continued)
  • 48. 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
  • 49. 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 PERYEAR 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
  • 50. 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.
  • 51. 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
  • 52. 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
  • 53. Contributors  MOHAMMAD ZAMBREE BIN DIMAN Independent Consultants, Director, Ever-Red Consolidated Sdn. Bhd.Author of Proposal For Food Grade Bulk CarrierTank 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 MUARRIFTAJUDDIN BINABDUL MUTALIB, Accounting Consultants, Former MD RedSea Engineering (M) Sdn. Bhd. Kuantan, Pahang, Malaysia.  CAPT ® SHAHARUDIN BINARRIFFIN, 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 Hashimah Binti Ismail, Head, Sabariah Binti Marzuki, Shah Alam, Selangor, Malaysia.
  • 54. Contributors (Cont’)  STEPHENYAP CHIN KEONG, Principal Consultants, Quality Partnership Sdn. Bhd. Kuala Lumpur Malaysia.  Dr. MICHAEL LOHTOON SENG (PhD),Author, Certified Productivity Specialist,Trainer, Principal Consultant IBM, Singapore.  RICHARD HOH SEE KHIN, IT SystemAnalyst, Data Base Designer,ARD Consulting Sdn. Bhd., Petaling Jaya, Selangor, Malaysia.  YAKOV REZNIKOV, Director, KMT International Inc. LosAngeles, California, USA.  NICK IM SOO PARK,Vice President, MegaMacs Korea, Busan, South Korea.  Datok Ir. ZAINI BIN DIMAN,Vice President, Telecom Malaysia Sdn. Bhd. ShahAlam, 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, ResearchAssistant 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.