Development of Chemical Precipitation Purchased Equipment Costs ‐ Tanks

The attached documents supplement EPA’s development of costs estimated for chemical totes by

providing information regarding the use of totes for onsite chemical storage for those plants requiring

relatively small quantities of wastewater treatment chemicals.  All relevant information from the text is

highlighted in yellow.
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IBCs Grow in Popularity Tank Truck 

Carriers, Tank Container Operators Share in 

the Success

Aug 1, 1999 12:00 PM, Charles E Wilson 

INTERMEDIATE bulk containers (IBCs) have become an integral link 

in the distribution chain for many food processors, chemical 

companies, and lubricants manufacturers. IBCs also present growing 

opportunities for tank truck carriers, commercial tank wash operators, 

and tank repair shops.

IBCs, also called totes, have been around for many years. They were 

developed as an alternative to drums and are one of the packagings 

approved for hazardous materials shipments. Besides transport 

applications, IBCs have found a niche in storage.

It's hard to say exactly how many IBCs are now in circulation, but it is

estimated that at least 500,000 totes are cleaned annually now. 

Based on current turn rates, the total population may be as much as 

four times the cleaning total.

Regardless of the total numbers, IBCs have become prevalent 

enough to catch the attention of tank truck carriers as well as 

numerous commercial wash rack operators. Manfredi Motor Transit 

Company has made one of the largest commitments to totes by 

developing a 45,000-square-foot dedicated cleaning facility in 

Cleveland, Ohio.

"We got into this in 1986 after a big shipper of coatings asked us to 

get involved," says Richard J Manfredi, president. "We started out 

small and found that totes were a relatively good fit for our operation. 

They don't interfere in any way with our tank fleet activities. "In fact, 

we believe that the tote services give us an edge with some of our 

customers. More of our shippers are calling for a one-stop source for 

transportation services. We believe tank fleets that offer tote services 

will benefit significantly."

Agreement comes from Andrew Zaleski, president and chief 

executive officer of Trimac Transportation Services Inc. "IBCs are 

part of the value-added package that we're trying to sell," he says. 

"We've found that IBC cleaning is a natural extension of our other 

tank cleaning activities, and we've set up a dedicated wash operation 

(in Oakville, Ontario, Canada)."

Most of the IBC customers served by Trimac and Manfredi Motor 

Transit are manufacturers of paints and coatings used in the 

automotive industry. For many of these manufacturers, paints and 

coatings are just one area in their product lineup, and they view IBCs 

from a broad perspective.

These manufacturers include DuPont Company, which uses IBCs for 

more than a thousand different products. About 45% of DuPont's IBC 

use is concentrated in North America, with Asia accounting for 25% 

and Europe for 20%. IBC shipments total less than 5% each in Africa, 

Australia, and South America.

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"The IBC is the right package for certain shipments to certain 

destinations," says John W Snyder, packaging & logistics specialist 

for DuPont Specialty Chemicals. "It is a safe and practical container."

The current container mix for chemical shipments at DuPont is 35% 

tank trailers, 25% rail tank cars, 20% IBCs, and 20% drums. IBCs 

aren't used more due to domestic freight disadvantages, higher 

package costs, and small customer order quantities, Snyder says. In 

addition, some customer facilities can't handle IBCs.

"Handling difficulties seem more prevalent overseas," Snyder adds. 

"Our Asian customers tell us that disposal or recycling is easier with 

drums than with IBCs. It becomes a product stewardship issue."

Besides paints and coatings, DuPont ships a wide range of 

chemicals in IBCs. Flammables top the product list, which also 

includes corrosives, poisons, oxidizers, and nonregulated materials.

IBCs have become the packaging of choice for bulk liquid shipments 

by the Consumer Care Division of Ciba Specialty Chemicals 

Corporation North America. The division ships about 15,000 IBCs a 

year both domestically and internationally.

"For the domestic markets, IBCs are leased through a use-returnrecycle program," says James W Hinson, manager of packaging and 

contract manufacturing for the Consumer Care Division. "The costs of 

inventory and disposal for our customers are eliminated. By recycling 

the IBCs, the environment is protected. Multiple use of the IBCs after 

refurbishing helps to reduce the cost of packaging.

"For export, we ship in either leased or new containers. When we 

send leased IBCs, we pay our container suppliers a surcharge for 

those not returned to the system. In either case, Ciba and our 

customers must deal with the empty IBC at the customer site."

As the terms used by Hinson indicate, IBCs are distinctly different 

from the types of liquid bulk transportation equipment typically 

handled by tank truck carriers. For instance, recycling and 

refurbishment refer to cleaning and general maintenance.

A wide variety of IBCs are in use, including stainless steel, aluminum, 

plastic, wooden, and flexible units. With the implementation of HM215C, all types of IBCs, except for 13M1 and 13M2 multiwall paper 

bags, are now considered suitable for reuse.

In general, IBCs are designed to be handled by a fork truck, and they 

are transported on flatbeds or in van trailers. The containers have 

hardware that is similar to the components found on cargo tanksdomelids, pressure/vacuum-relief vents, and discharge valves.

They can be fitted with mixers to keep the contents stirred up. 

Heating coils and insulating jackets are available to help maintain 

product temperature in transit or during unloading. Maximum capacity 

for an IBC can't exceed 3,000 liters (793 gallons). The minimum is 

450 liters (119 gallons).

With the chemical industry becoming more global all the time, 

shippers are looking for IBCs that can be used with a wide range of 

vehicles, according to Patrick Kirby, staff engineer, technical 

packaging at Clariant Corporation. Base dimensions should be 

1200mm x 1000mm. IBCs must be stackable.

The use of soft and hard side trailers, as well as narrow and wide 

gauge rail equipment, necessitates a four-way-entry pallet. Plastic is 

becoming the tank material of choice because it provides cleanability, 

long life, and low cost. Chemical customer requirements for quick 

and easy valve hookups will promote standardization on quickdisconnect valves.

Totes that handle hazardous materials must be visually inspected 

prior to reuse to ensure that they are free from corrosion, 

contamination, cracks, or other damage that would render it unsafe 

for transportation. Proper markings must be in place before an IBC 

can be reused. At 2.5-year intervals, IBCs used to transport 

hazardous materials must be tested for leaks.

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Only metal IBC tanks can be repaired. Tanks made of other materials 

must be replaced. Even with the additional care that is required for 

reusable IBCs, chemical companies believe they are the way of the 

future. "The chemical industry has a strong commitment to be 

progressive environmental stewards," Kirby says. "In order to fulfill 

this objective, we must know the cradle-to-grave status of all our 

packages."

Like others involved in the distribution of chemical products, Kirby 

acknowledges that drums are difficult, if not impossible, to track, 

especially in overseas markets. Reusable IBCs give the shippers 

greater control.

At the same time, managing IBCs can be a tedious task for chemical 

company distribution departments. Ongoing personnel reductions 

have left many of these departments thinly staffed, and they are 

anxious to offload the responsibilities to outside contractors.

One hope is that third parties will help find greater efficiencies in 

IBCs. For instance, an average turn ratio for many totes today is 

around 41/2 times a year. There is far too much waste and 

inefficiency, considering a stainless steel IBC can cost in excess of 

$5,000.

Kirby says, "The chemical industry needs full-service providers that 

will supply the IBC of choice, track IBCs globally, collect IBCs at 

customer facilities for return, recondition or dispose of returned IBCs, 

and handle IBC filling at plant or offsite locations.

"In order for you to be a contender in this marketplace, I believe you 

either need to provide all of these functions under your own umbrella 

or have strong partnerships and/or alliances that will allow one-stop 

shopping."

Tank container lessors, operators, and third-party depots may find 

that it makes sense to provide the international IBC management that 

the chemical companies are looking for. Companies in the tank 

container industry already have the global infrastructure in place in 

many cases.

Tank truck carriers and companies serving the tank truck and tank 

container industries have an opportunity to be active players in the 

IBC market in a number of areas, such as tank cleaning and repair.

As in real estate, the key considerations here are location, location, 

location. IBCs are a relatively low-value package, and they aren't 

going to be moved long distances just for cleaning and maintenance.

"You have to be careful in selecting the location of an IBC cleaning 

operation," Zaleski says. "You have to go where the companies are 

that are using the products shipped in IBCs. I see a geographic 

monopoly in this business."

For wash racks in the right place, the opportunity can bring significant 

amounts of new business. Zaleski points out that Trimac's dedicated 

IBC wash facility in Oakville, Ontario, cleans around 15,000 totes a 

year. That works out to about 65 a day.

The dedicated IBC wash operation at Manfredi Motor Transit is 

cleaning more than 150 totes a day, and the volume is expected to 

increase by 75% in the next six months. Metal totes predominate 

now, but the company predicts significant increases in plastic tote 

cleaning in the future.

"We expect to clean 1,500 to 2,000 plastic totes a month at our 

Cleveland facility," Manfredi says. "The industry hasn't even 

scratched the surface on the potential for plastic IBCs."

Trimac and Manfredi Motor Transit have several things in common in 

their approach to IBCs. They have their own vehicles for picking up 

dirty IBCs and returning the clean containers.

They built dedicated IBC cleaning facilities that are run separately 

from their tank fleet operations. These wash operations are tailored 

to the specific cleaning needs of IBCs.

The IBC program developed by Manfredi Motor Transit operates 

under the name Manfredi Special Services. The wholly owned 

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subsidiary is part of the International Container Services marketing 

alliance that was established in partnership with Philip Services Corp. 

Besides IBC cleaning and maintenance, the alliance provides a 

variety of transportation and logistics services.

Manfredi Special Services runs a state-of-the-art computerized IBC 

cleaning facility, including a sophisticated wastewater treatment plant 

that handles about 30,000 gallons of water a day. High-pressure 

spinners ensure that all product residue is removed.

"IBC cleaning takes a real commitment," Manfredi says. "It's not for 

the faint hearted. I don't believe that converting a bay in an existing 

tank trailer wash rack is an effective strategy. There is only room for 

about six IBC stations in the typical 100-ft wash bay. As many as 25 

stations may be needed for a viable IBC wash operation.

"Technology requirements are greater. Spinners are running at 2,000 

psi and higher, because that's what it takes to remove residue that 

has had a month or more to set up. Injection cleaning systems put 

water and cleaning solutions in faster than gravity will allow them to 

drain. High-capacity pumps are a necessity. Filtered air must be used 

for IBC drying.

"A higher level of clean is required with IBCs. Totes are used for a lot 

of high-value products, and contaminants are more noticeable in a 

small vessel like this. Numerous rejections can spell disaster."

Large-capacity wastewater treatment systems are needed. Many of 

the IBCs cleaned by Manfredi Special Services arrive with about an 

inch ofheel. Typical IBC wash operations can generate as much 

waste as a four- to six-bay tank trailer cleaning facility.

With the IBC cleaning activity growing, Trimac and Manfredi Special 

Services are looking for ways to expand involvement with the 

containers. For instance, Manfredi Special Services is developing a 

computerized tracking system for totes.

Neither company has a great interest in adding transportation of filled 

IBCs. "While some shippers are asking us for more capabilities, there 

are too many companies already in the van transportation business," 

Zaleski says. "We might consider it if we had a specific request, but 

we would want a hard contract."

Manfredi adds that it is easier to drive a tank trailer than a tote. "We 

find that most of our customers are using the same dry freight 

carriers for totes as they have for drums and other packaged 

shipments," he says.

Tank truck carriers have taken over IBC filling responsibilities for 

some shippers. In many cases, the shippers also have handed over 

loading operations for tank trailers, tank containers, and even rail 

tankcars.

Shippers are contracting with tank truck carriers to refill IBCs that 

have been stationed at consignee locations. More shippers are using 

IBCs as storage at small customer locations, and the trend seems 

certain to grow.

Vegetable oil processor Mallet and Company Inc provides a good 

exam-ple. The Carnegie, Pennsylvania-based company supplies 

custom-blended vegetable oils to the baking and food processing 

industries.

IBCs have been used to shift customers out of drums. The IBC 

program was initiated in 1994 and has been a major success.

Cost is what convinces many Mallet customers to switch to bulk 

shipments. Salesmen for Mallet explain that each steel drum costs 

$22, or about five cents a pound for the product inside. Disposal can 

cost as much as $15 per drum.

IBCs cost significantly more than a drum, but they hold more and are 

refillable. The IBCs are either leased or sold to customers. Mallet has 

standardized on the Schutz Ecobulk modular system that consists of 

a plastic tank inside a heavy-duty wire frame. The 275- and 330-

gallon units used by Mallet weigh 130 pounds empty. They can be 

stacked three high.

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In most cases, the totes are refilled at the customer location. Mallet 

has outfitted one tractor with a portable delivery system that includes 

a Veeder-Root meter and register, Civacon Kamvalok dry disconnect 

coupling, Banjo fill nozzle, and 37 feet of 11/2-inch hose.

The tractor with the portable delivery system is paired with one of the 

four-compartment tank trailers in the fleet. The driver makes up to 

three stops a day and will fill 15 or more IBCs at a time. Deliveries 

generally take two to two-and-a-half hours.

While at the customer location, the driver inspects each tote. He will 

not fill an IBC that has damage to the plastic tank or is in need of 

cleaning. Maintenance is a shared responsibility, but it is up to the 

customers to have the IBCs cleaned. After a delivery, the driver seals 

the fill opening on each IBC.

It's clear that the role of the IBC is steadily increasing in the global 

marketplace. Tank truck and tank container companies have an 

opportunity to share in the IBC success.

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 Project No.: 0317.00.029.035 DISTRIBUTION 

Page _1_ of __1_

Project Name: Steam/Cost/Compliance Modeling 

TELEPHONE CALL RECORD 

 Outgoing Call 

Date: 02/26/2013 Time: 1:00 pm EST 

Company Name: Tunnel Barrel & Drum Co. 

 

Contact Name: Receptionist 

Phone No : (201) 933-1444 

Name: Debbie Falatko ERG

GENERAL SUBJECT: Vendor cost request for totes 

 

TOPICS DISCUSSED AND ACTION TAKEN 

I spoke with a representative of Tunnel Barrel & Drum Co. to discuss costs for totes. She said the per unit cost 

is $190, which includes a used cage and a new bottle. Discount pricing is available for purchase of totes in lots. 

Tunnel Barrel & Drum Co. does not provide tote leasing.