ISO Tank Components, Design & Safety - Deccan Transcon

Should mergers and acquisitions be a part of the growth strategy in the ISO tank sector?

M&As are an integral part of the shipping community industry specially in the box container space. It has picked up in recent years in the ISO tank operator community, with large companies mostly acquiring smaller/ medium ones.

However, deals between similar-sized or medium-sized companies are not common.

Growth is primarily organic, driven by fleet expansion, network growth, and customer base development. Smaller and medium-sized players are usually regional, operating close to their home base.

What if a medium-sized operator in Asia could merge with a similar-sized operator in Europe? This could be a faster, more assured path to growth.

A European player may struggle to replicate an Asian operator's market knowledge and access, despite business potential. Joining hands unlocks value for both.

Of course, this is easier said than done. They require aligning vision, values, and objectives beyond financial metrics. For operators, it's an area worth exploring.

Another approach for smaller operators is to position themselves as attractive acquisition targets. It begins with building intrinsic value to catch the eye of larger corporations seeking inorganic growth.

In ISO tanks, company size is defined by fleet count rather than revenue:

- Small: Under 1,000 tanks
- Medium: 1,000 to 5,000 tanks
- Medium-Large: 5,000 to 12,000 tanks
- Large: Over 12,000 tanks

Operational efficiency, customer relationships, and market positioning are important for small/ medium players who want to be acquired.

A solid foundation makes the company a compelling buy for larger operators looking to expand their footprint. Another area worth exploring.

Do you see M&As as a viable growth lever for small and medium-sized players?

Top factors to consider when choosing the right ISO Tank partner for your business.

As an operator, growth depends on two key components:

1. Increasing fleet size
2. Effectively deploying that additional capacity

Building deployment capability requires increasing volumes in existing regions and expanding into new geographies.

ISO tanks are specialized equipment, and finding the right partner in each target area is critical. They impact customer relations, container delivery, depot selection,  and optimal tank utilization.

Some pitfalls for smaller companies:

- Low volumes make it tough to attract established partners and agents

- Settling for inexperienced partners leads to tanks sitting idle, incurring storage costs, and struggling to ship back

Choosing the right partner depends on your team's ability to build relationships with partners who deliver. A measured approach is important - do not rush into untested partnerships based on big promises only.

The challenge - top agents work with multiple operators, prioritizing larger players. To make the list, work towards relationships that align interests.

Ultimately, fleet expansion is an investment. Without strong deployment capabilities, you risk burning money instead of generating returns.

The solution - spread your network wide early, but strategically. Leverage prior market knowledge and existing partner relationships to scale reliably.

At Deccan Transcon Group of Companies, we learned these lessons and also continuously refined our approach.

If you're seeking a partner with the expertise to drive your ISO tank business forward, reach out to us at sales@deccantrans.com to explore collaboration opportunities.

Safety and sustainability in the chemical supply chain. What role should we play?

Chemical companies can make an even bigger impact through practices that benefit all involved in the supply chain thus contributing to environmental safety.

Manufacturers are in the best position to lead education and training initiatives to promote it. They have the expertise and resources to drive positive change.

Here are examples of how some companies are currently doing it :

1. They’re funding safety training and equipment for local responders to improve community preparedness.

2. They’re going beyond regulations to pioneer practices like green technologies that minimize environmental impacts.

3. The collaborative R&D on safer chemicals and processes is benefitting the whole industry through major innovations.

These interventions help companies :

- Strengthen their reputation and brand image.
- Attract and retain top talent
- Foster a culture of innovation and collaboration

The movement of these chemicals is crucial to a manufacturer's supply chain, often involving third-party logistics providers for transportation, storage, and shipping.

Any vendor's negligence can harm the manufacturer's reputation, undoing their efforts to maintain high safety standards within the factory.

In addition, shippers should audit tank operators and depots for compliance, and invest in partners prioritizing safety and sustainability for long-term success of the chemical supply chain.

To ensure alignment with the manufacturer's safety and sustainability objectives, logistics partners should be incorporated into the company's ecosystem, focusing on providing training to their vendors and partners.

These are not just feel-good initiatives; they are strategic investments in the future of the chemical industry. True progress in safety and sustainability requires a collective effort.

This concludes the series that covered various aspects of ISO tanks industry. I would be happy to continue sharing my learnings with the ISO tank community. Please share any topics you would like me to cover.

Learning tank handling procedures is half the challenge. The real difficulty is keeping pace with changing rules about tank usage.

Agencies issue and change tank rules often. Updates occur faster than companies can implement. Keeping up with standards is challenging, especially for office personnel handling documentation and compliance.

You need to know the differences between:

- Legally enforceable regulations
- Voluntary guidelines
- Operational recommendations
- Manufacturer specifications

1. The role of MSDS - For office personnel, the challenge is interpreting complex documents to ensure safe transportation. The MSDS is critical and provides product information. It offers composition, hazard identification, handling procedures, emergency responses, and UN numbers and regulations.

The interpretation matters because it ensures correct documentation, helps maintain compliance and minimizes risks. This makes it crucial to ensure safe transport and for ISO tank regulations to be followed.

2. The role of IMDG Code - IMDG Code is essential for selecting suitable ISO tanks. It’s a global benchmark for dangerous goods transportation by sea, addresses hazardous materials transport within tanks and classifies materials, and outlines regulations for packaging, labeling, stowage, segregation.

But some countries have stricter regulations or additional customs rules. Variations exist between IMDG Code and European ADR/AND/RID/ and US DOT. Applying only local regulations may lead to shortcomings for sea shipment under IMDG Code and vice versa.

Unfortunately, many in ISO tank supply chain, lack proper training in interpreting the IMDG Code despite IMDG Code 1.3.1 requiring it for shore side staff processing documents, refreshed every 2 years. This also leads to misinterpretations, improper tank selection, and non-compliance with regulations.

Proper training bridges this gap. It equips both office staff and operators with the skills to interpret regulations, identify suitable tanks and ensure safe handling

But, importantly, training also creates a proactive safety culture by helping personnel understand the "why" behind regulations, ultimately preventing accidents and reducing costs associated with non-compliance.

Are you facing similar challenges in ISO tank regulations?