Earthquake-Insurance-Style Solution Proposed for Process Safety Investment Costs

To comply with the Seveso III Directives aimed at ensuring process safety and preventing major industrial accidents, chemical sector companies face investments of approximately USD 2-3 million. To finance the measures the sector must take, there was discussion about whether the Compulsory Earthquake Insurance (DASK) model could be utilized. Kocaeli Chamber of Industry organized the Process Safety Symposium and Exhibition on 14-15 May 2018 at The Green Park Pendik Hotel and Congress Centre to draw attention to occupational health and safety. The Regulation on the Prevention of Major Industrial Accidents and the Reduction of Their Effects, which will be updated in July 2018 to cover the Seveso III Directives, was on the agenda of the event, which brought together all sector stakeholders. During the panel titled "Process Safety: Benefits, Challenges and Solution Proposals," representatives from the public sector, private sector and civil society addressed this regulation affecting the sector. The panel, moderated by Bloomberg HT TV News Coordinator Ali Çağatay, was attended by Labour Inspector Abdurrahman Akman from the Ministry of Labour and Social Security, Head of the Major Industrial Accidents Control and Inspection Department Özlem Yıldırım from the Ministry of Environment and Urbanization, Expert Fatih Şen from the Disaster and Emergency Management Presidency of the Office of the Prime Minister, Deputy Chairman of the Management Board Çınar Ulusoy from Kocaeli Chamber of Industry, Chairman Feridun Uzunyol from the Chemical Employers' Association (KİPLAS), and Refinery Manager Metin Tüfekçioğlu from TÜPRAŞ İzmit.

Industry Needs USD 2 Billion in Resources

Deputy Chairman of the Management Board Çınar Ulusoy from Kocaeli Chamber of Industry began his remarks with a striking example: "In South Africa, there is a diamond mine closed in the 1970s. In this diamond mine that operated for 200 years, 4.5 million people worked and 99 percent of them were slaves. Not a single person from these 4.5 million died from a work accident. In our country, we know that over 1,400 deaths are attributed to work accidents. As industrialists, we are aware of the situation and for this reason, we took the initiative to organize the First Process Safety Symposium and Exhibition." Çınar Ulusoy stated that the Seveso II Directives are currently in force in Turkey, and the Seveso III is expected to come into effect in July. He noted that industry has not yet surpassed the safety report level and the number of companies that can meet regulatory requirements is very few. Stating that companies can fulfill these obligations with serious investments, Ulusoy reported that, varying according to the facility size and safety measures taken to date, companies face an investment of approximately USD 2-3 million. Informing that 641 companies currently need to take these measures, Ulusoy explained that industry's resource need is at the level of USD 2 billion.

Horizon Projects Can Be Used for Investment Support

Stating that quick progress is needed for national security, Ulusoy clarified that the public and industrial organizations must act together. Underlining the critical importance of incentive support, Ulusoy emphasized that support from EU Horizon Projects could be obtained. Ulusoy stressed that energy transmission lines, in addition to chemical storage facilities, should also be evaluated within the scope of Seveso III.

Financing Through DASK Model is Possible

Chairman Feridun Uzunyol from the Chemical Employers' Association (KİPLAS) drew attention to the fact that employers need capital to take necessary measures, emphasizing that insurance could be the most important capital instrument. Uzunyol stated that insurance is money collected to finance in advance a matter that should not be in your future, adding: "In the past, some lawmakers brought insurance on board and carried out certain insurance schemes, for example like DASK. The same model can be applied to process safety investments. Part of the money paid can be used preventively in different line items. Thus, the USD 2 million investment can be financed."

Engineering Curriculum is Problematic

Refinery Manager Metin Tüfekçioğlu from TÜPRAŞ İzmit stated that process safety is indispensable, saying: "If you want to take care of your employees, what you produce and the environment, the implementation of process safety is extremely important." Tüfekçioğlu noted that the engineering curriculum is problematic and graduates start work with no knowledge on this subject. Emphasizing the importance of process safety training for engineers who will work especially in production, Tüfekçioğlu reported that they have organized simulation trainings with VR goggles to reach the young generation in particular. Noting that the new generation learns visually, Tüfekçioğlu said that accidents are things that cannot be learned through experience, and therefore simulation is the most ideal method.

Preventive Inspection Approach Has Arrived

Labour Inspector Abdurrahman Akman from the Ministry of Labour and Social Security drew attention to the fact that the accident that occurred in Italy in 1976 changed the fate of the entire world, noting that what is not a new accident is a repeated accident, and therefore lessons must be learned from past accidents. Akman added that the Inspection Board in 2011 underwent a paradigm shift, moving from reactive inspections to a preventive inspection approach.

Hazardous Substance Declarations Must Be Made by 18 July

Head of the Major Industrial Accidents Control and Inspection Department Özlem Yıldırım from the Ministry of Environment and Urbanization noted that the Ministry established a system to register facilities. Stating that companies declare the hazardous substances they possess through the established BEKRA Notification System, Yıldırım conveyed that companies are separated as lower and upper level according to hazardous substance ratio. Yıldırım stated that according to BEKRA II records, there are approximately 350 upper and 350 lower level facilities in Turkey, and according to BEKRA III records, an additional 79 upper and 61 lower level facilities have newly registered. Yıldırım emphasized that companies must update their forms by 18 July 2018. Stating that they have developed a web-based applicable system, Yıldırım noted that they have also developed inspection modules for field inspections.

Risks Must Be Reduced

Expert Fatih Şen from the Disaster and Emergency Management Presidency (AFAD) noted that industrial accidents can cause more damage than a landslide, drawing attention to the critical importance of taking measures in advance. Providing information about the Turkey Disaster Response Plan (TAMP) applied by AFAD, Şen stated that with TAMP, they are conducting work that will enable risk reduction, preparedness, response and post-disaster recovery activities regarding disasters to be carried out in an integrated manner.