Review of Operations - Supply & Distribution (continued)
Terminals upgraded to meet market changes
Work continued on a major program to upgrade and expand Caltex’s fuel storage and distribution facilities to strengthen the reliability of Caltex’s supply system. This is responding to changes in the Australian market that include rising fuel imports, expanding demand for diesel and fast growing regional Australian markets.
During 2007, the focus was on the $10.9 million upgrade of Caltex’s Mackay terminal in central Queensland situated in one of the country’s fastest growing markets for diesel. An advanced new integrated process control system will make the Mackay terminal one of the safest and most up-to-date fuels terminals in the country.
The rapid expansion of biofuels sales during the year led to priority being given to upgrading biofuels facilities at Caltex’s Newcastle and Banksmeadow terminals in NSW and Lytton terminal in Queensland.
Outfitting these terminals to handle biofuels involves upgrading existing tanks, bunds, pipes and safety systems and installing new pumps and electrical systems to provide an automated blending process and the loading rack for E10 petrol and biodiesel.
The Banksmeadow and Lytton ethanol infrastructure projects will each cost around $2 million and are scheduled for completion in 2008.
Caltex is responding to changes in the Australian market that include rising fuel imports, expanding demand for diesel and fast growing regional Australian markets
Focus on safety and compliance
Progress was made on a number of safety and compliance projects in 2007 and work commenced on implementing the Operational Excellence Management System for the newly-formed Supply & Distribution department.
The safety efforts of Caltex drivers were supported with the introduction of new tanker trucks with advanced safety features at a number of Caltex terminals around Australia. The new tankers have an overfill detection system, and best practice braking and suspension systems that deliver improved stability and control. The tankers also have six rather than five compartments to increase the fleet’s flexibility in handling the growing number of fuel products Caltex delivers.
There was continued strong focus on carrier accreditation for transport of fuel by contractors. This ensures that Caltex transport contractors pass a stringent audit of their drivers, vehicles and equipment, safety processes, emergency response and other risk management features.
Further work was done in 2007 on rolling out a system to deliver best practice safety assurance at all Caltex terminals. The benchmark adopted by Caltex is the comprehensive safety case regime developed at Caltex’s Newport terminal to comply with Victoria’s licence to operate regulations. This system will be adopted at Caltex terminals around Australia.
Maintenance and reliability systems in Caltex’s 12 terminals and the Sydney to Newcastle pipeline were boosted during the year with the introduction of a national computerised maintenance management system.