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32
1 May-July 2013 | LUBEZINE MAGAZINE PLUS: ENI BRAND RETURNS TO EAST AFRICA P.4 VOL.7 • MAY-JULY 2013 WWW.LUBESAFRICA.COM Lubrication in the food and beverage industry P.4 Focus on Pan African lubes brands P.26 PLUS USED OIL AS FUEL FOR GLASS WORKS IN KENYA MAIN FEATURE CEMENT PLANT LUBRICATION

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1 May-July 2013 | LUBEZINE MAGAZINE

PLUS: ENI BRAND RETURNS TO EAST AFRICA P.4

VOL .7 • MAY-JULY 2013

W W W . L U B E S A F R I C A . C O M

Lubrication in the food and beverage industry P.4Focus on Pan African lubes brands P.26

PLUS

USED OIL AS FUEL FOR GLASS WORKS IN KENYA

MAIN FEATURE

CEMENT PLANT LUBRICATION

2 LUBEZINE MAGAZINE | May-July 2013

Inside Front Cover

Full Page Ad

1 May-July 2013 | LUBEZINE MAGAZINE

CONTENTSN E W S • I N D U S T R Y U P D AT E • N E W P R O D U C T S • T E C H N O LO GY • C O M M E N TA R Y

MAY-JULY 2013

W W W . L U B E S A F R I C A . C O M

VOL 7

9 | COMPANY FEATURE

Hashi Energy launches new range of Eni’s lubricants

10 | LOGISTICS FEATURE

Flexitanks: Logistic challenges turned into competitive advantages

14 | ENVIRONMENT FEATURE

Environmental Auditing for Service Centres

16 | IN OTHER WORLDS

Castrol Partners with TomTom to study impact of stop-start driving

Eni renews its technology, industrial and commercial partnership with Piaggio

20 | TECHNOLOGY FEATURE

Lubrication in the food and beverage industry

23 | GLOBAL MARKET FEATURE

World demand for lubricants to hit 43.9m metric tons in 2017

INSIDE REGULARS

24 ERC PLANS TO REGULATE THE LUBES MARKET

2 | Editor’s Desk

4-6 | The Market Report

British Petroleum (BP)

returns to Kenya market

Eni (formerly Agip)

re-enters the East African

lubricants market

Total Kenya holds Regional

Sugar Millers Conference

KenolKobil, BP feud over

Castrol distribution rights

Nigerian lubricant

producers association

protests high base oil tariff

8 | Questions from our

readers

26 | Focus on Pan African

lubes brands

ANSELM CROZE: INNOVATOR WHO USES OIL WASTE TO MAKE BEAUTIFUL OBJECTS

18 | RECYCLING FEATURE

Cement plants lubrication

TECHNOLOGY FEATURE

12

2 LUBEZINE MAGAZINE | May-July 2013

EDITORIAL

A s the African continent celebrates 50 years of

AU (formerly OAU), we have found it fi tting to

feature Pan African lubricants brands that have

emerged over the years. These brands although

currently commanding a small market share, are

likely to emerge as strong players in the coming

years. In this edition, we feature MOGAS and SYNERGY.

In many African countries, governments have put in place

mechanisms to encourage value addition, which to some

extent lead to technology transfer in addition to creating the

much-needed jobs. Punitive taxation on imported fi nished

products is one way that these governments push for local

lubricant production and that has contributed signifi cantly to

the emergence of Pan African brands. This has not been without

teething problems as the protest by LUPAN (Nigerian Lubricant

Producers Association) over low tariffs of imported fi nished

lubricants has shown.

Without a doubt, the next phase in the development of the

lubricants market in Africa is the stringent control on the

quality of products used. As evidenced in Kenya, the Energy

regulatory commission (ERC) is stepping in to help streamline

the market along this line. We expect this to be the norm in

many regions as customers, especially the middle class in the

automotive sector, become more discerning and consequently

demand high quality products to match their ultra-modern

machines.

Our cover article for this edition is dedicated to sustainable

environmental protection. Using waste oil to fi re up glass melt-

ing furnaces, Kitengela Hot Glass demonstrates how to create a

viable business using this by-product of the lubrication process.

The fact that the glass used is recycled makes this venture truly

green and a model worth emulating across the continent.

Thanks to our loyal advertisers, professional contributors

and a 3000 plus strong readership, Lubezine continues to be the

premier source of information for the region.

Happy reading

Africa @ 50; what is the future for lubricants market?

EDITOR’SDESKVOL 7 • MAY-JULY 2013

BP re-enters the East AfricaTurn to P.4

Publisher:Lubes Africa Ltd

Editor: Susan Mwangi

Design & Layout: Andrew Muchira

Contributors: Irina Lagereva

Samuel Macharia

James Wakiru

Joseph Ndung’u

Andrew Monk

Nyakundi Nyagaka

Lucie Wanjohi

Photography: Bettercom Media services

Lubezine library

Art Direction: Zeus Media Ltd

[email protected]

Advertising & Subscription:

[email protected]

www.lubesafrica.com

Subscriptions: Lubezine is free to qualified subscribers who are involved in the lubricants industry as manufacturer’s end-users, marketers and suppliers to the oil industry. Lubezine is a quarterly publication of Lubes Africa Ltd. All rights reserved. No part of this publication may be produced or transmitted in any form including photocopy or any storage and retrieval system without prior written permission from the publishers.

1 May-July 2013 | LUBEZINE MAGAZINE

PLUS: ENI BRAND RETURNS TO EAST AFRICA P.4

VOL .7 • MAY-JULY 2013

W W W . L U B E S A F R I C A . C O M

Lubrication in the food and beverage industry P.4Focus on Pan African lubes brands P.26

PLUS

USED OIL AS FUEL FOR GLASS WORKS IN KENYA

MAIN FEATURE

CEMENT PLANT LUBRICATION

Without a doubt, the next phase in the development of the lubricants market in Africa is the stringent control on the quality of products used

Joseph Ndung’u

3 May-July 2013 | LUBEZINE MAGAZINE

LUBEZINE?

lubricants capitallubricants p

WHO IS READING

If you wish to communicate to any of the above groups about your products, Lubezine offers the most direct link

The readership includes:Lubezine is a free magazine to qualified subscribers

To advertise, contact Lubezine sales team at:

Focusing on Africa’s lubrication needs

Issue 002October-Decemberwww.lubesafrica.com

Aviation Lubricants

Gulf Energy Launches Lubricants

BEARING FAILURE and lubrication

Focusing on Africa’s lubrication needs

Issue 002October-Decemberwww.lubesafrica.com

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Inside Kenya’s lubricants capital

The basics of oil additives P.16

Inssiide Kennyya’sya’sKirinyaga

RoadPLUS: THE MARKET REPORT P.4

NOT FOR SALE

W W W E A F R I C A C O M

FOCUS ONF

A guide to buying lubricants P.10NEW LOOK!

4 LUBEZINE MAGAZINE | May-July 2013

to facilitate its intention to

establish a nationwide pres-

ence.

Before the fi rms exit in 2007,

it had a joint venture with Shell

with assets that included 130

retail stations, aviation fuels,

lubricants and had 17 percent

of BP’s shares in the Kenya

Petroleum Refi neries, which

were sold to Essar.

The venture was driven out of

the Kenyan market on account

of reduced profi t margins,

rising competition and price

THEMARKETREPORTNEWS • BRIEFING • NEW PRODUCTS • TECHNOLOGY

RE-ENTRY

B ritish Petroleum (BP)

has begun seeking

out distributors for its

Castrol branded lubricants as

it makes plans to return to the

Kenyan market after it quit

the country in 2007 following

its decision to sell its Kenya

business.

Earlier, the fi rm acquired the

Castrol brand in 2002 but later

sold its Kenyan business in 2007

to Shell Petroleum Company,

which also sold 80 per cent of

its Africa operations to Vitol in

2011.

In a May notice, BP

announced that applications

were open for the distributor-

ship of Castrol and BP lubri-

cants to cover automotive,

industrial and mining sectors,

adding that the prospective

distributor would need Ksh. 84

million and enough transport

British Petroleum (BP) returns to Kenya market

Questions from our ReadersSee also P.8

BP announced that applications were open for the distributorship of Castrol and BP lubricants to cover automotive, industrial and mining sectors

cap that promoted big oil

marketing fi rms out of Africa

as they shifted focus to the

more lucrative exploration and

production activities.

However, it may not be

smooth sailing for BP as

KenolKobil has already moved

to court in a bid to block re-entry

of Castrol brand through a

different agent. KenolKobil

has been distributing Castrol

lubricants alongside their own

brand of Kenol lubricants. .(See separate story)

E ni lubricants formerly

Agip lubricants have

made a re-entry into

the East African lubricants.

Eni which previously traded

as Agip has a long history in

the region. Before it exited the

market in the 90’s, it oper-

ated as a fully integrated oil

company in the region with

fuel depots, service stations

and a lubricants blending

plant in Tanzania.

Through its locally

appointed agent, Hashi

Energy, ENI lubricants plan

to establish a presence in

Kenya, Uganda, Rwanda,

Burundi, South Sudan and

Eastern Democratic Republic

of Congo.

The lubricants were

offi cially launched in Nairobi,

Kenya in a colourful cer-

emony attended the minister

in charge of the petroleum

sector, Mr. Davis Chirchir and

Eni Vice President, Mr. Luca

Arcangeli.

In the recent past many

multinational Lube brands

that had earlier exited from

the region have been trooping

back through appointed

distributors. These include

brands such as Chevron and

BP..

Eni (formerly Agip) re-enters the East African lubricants market

5 May-July 2013 | LUBEZINE MAGAZINE

DISTR IBUT ION

F rom 10th – 12th June

2013, Sugar millers

drawn from Kenya,

Sudan, Ethiopia, Tanzania,

Zambia, Uganda, Mauritius and

Zimbabwe descended on the

lakeside town of Kisumu, Kenya

to attend a conference on Sugar

mills lubricants. The forum was

offi cially opened by Mr. Daniel

Mayieka - Specialties Manager on

behalf of Total Management.

The conference was facilitated

by Ms. Christele Halwajian and

Mr. William Duchatelle from

Total Headquarters in France and

the Total Regional Lubricants

Manager, Mr. Mesfi n Ejigu

from Ethiopia assisted by Mr.

Kenneth Koskei, the Lubricants

Training Manager from Kenya.

Two major companies have clashed over a lubricant brand’s distribution rights in the Kenyan market in a dispute that has threatened to touch off a legal battle pitting the oil marketing multinationals against each other.

In May, British Petroleum (BP) claimed distribution rights for Castrol brand lubricants in the country, prompting resistance from KenolKobil

Total Kenya holds Regional Sugar Millers Conference

KenolKobil, BP feud over Castrol distribution rights

CONFERENCES

These regulations will aff ect the whole lubricants industry from new entrants, existing lubricants

businesses to other complimenting sectors like lubricants transporters and storage facilities

Turn to

Also present was Total Kenya

Lubricants Sales Manager, Mr.

Julius Kinoko.

Kisumu was chosen as the host

town due its strategic location

and proximity to the Kenyan

Sugar belt and also due to the

strong presence of Total in the

region.

All the Sugar factories in

Kenya that are in Operation are

located in the western region

namely; Nzoia, Butali, Mumias

and West Kenya Sugar in the

Western block; Kibos, Muhoroni

and Chemelil in Central Nyanza;

Sony Sugar and Sukari industries

in South Nyanza and Transmara

Sugar located in the Mara Region.

All these sugar factories

use Total Lubricants and were

with the latter insisting it is the legal distributor of the brand in Kenya.

BP left Kenya in 2007 when it sold its Kenyan entity to Shell Petroleum Company, but has since announced that it is seeking Castrol lubricant brand distributors in Kenya with its return to the market, a move KenolKobil has vehemently dismissed as illegal.

‘In our view your

represented in the seminar.

Africa is ranked 6th in the

world in sugar production after

Brazil, India, EU, China and

Thailand. Africa produces 8 Mil-

lion tonnes of sugar per year with

South Africa, Egypt and Sudan

being the dominant producers.

The diverse geographical

representation in the conference

offered a rich forum for exchange

of ideas and sharing of experienc-

es. The theme of the conference

was “TOTAL LUBRICANTS - your

competitive advantage in the

sugar industry”. The Mill being

the most critical equipment in

the sugar factory is often called

the “Heart” of the factory.

The fl agship product was

CERAN GEP- special grease for

action to seek the distributorship of Castrol products in Kenya is misplaced and clearly in contravention and breach of the arbitration award and court order,’ said Jacob Segman, KenolKobil Chairman in a May 21 letter to BP’s CEO, Bod Dudley. KenolKobil was awarded the right to supply Castrol lubricants by the initial owner of the brand, Burmah-Castrol of

P.24

Scotland. However, the deal went sour in 2000 when BP bought Burmah-Castrol for Sh.384 billion in a development that cast a shadow of uncertainty over KenolKobil’s distribution rights of Castrol products.

But KenolKobil said it went to court in 2000 and successfully obtained a court order holding the handover of the supply rights to the new owner, Shell Kenya.

‘The court ordered that Kobil continues to dis-tribute Castrol lubricants in the whole of the East African region’, said Mr Segman in the letter he wrote to Mr Dudley on the matter, adding that he (Mr Segman) was ready to meet and discuss the matter so as to avoid an unnecessary legal dispute in the courts. .

Additional information from the Business Daily

sugar mill bearings, mill pinions

and crystallizer worm gears.

The conference comprised of

presentations from the facilita-

tors and a participatory group

workshop.

The facilitators made presenta-

tions on World Sugar Market,

Lubricants knowledge and

new technologies, Food Grade

Lubricants (with Nevastane,

the Total Food Grade lubricant

range), Biodegradability, Total

Lubricants Services-Maintenance

Software; TIG XP5 and Oil

Monitoring: ANAC.

On the fi nal day, the par-

ticipants were taken on factory

tours of Sukari Industries in

Ndiwa and Transmara Sugar in

Kilgoris. .

Sugar cane transport

in western Kenya.

6 LUBEZINE MAGAZINE | May-July 2013

T he Lubricants Producers

Association of Nigeria

(LUPAN), which has

over 32 companies as members,

has warned the Nigerian Federal

Government that proactive

action must be taken to curb

the upsurge of sub-standard

fi nished lubricants and the high

tariff imposed on imported base

oil into the country.

In a petition to the Minister

of Trade and Investment, the

association said the high tariff

on base oil, which it puts at 10

per cent, is the same as that on

imported lubricants, both being

housed under the same H.S

CODE “2710.1939”..

LUPAN says “this situation

puts the lubricant manufactur-

ers at a disadvantage in the

sense that after the payment of

the 10 per cent tariff, while the

importers of fi nished lubricants

sell their products directly to the

consumers without extra costs;

the licensed blenders through

the process of blending incur

further expenses adding value

to the base oil by introduction

of additives and the employ-

ment of labour, cost of energy

consumed while running their

respective blending plants and

the high rate of interest accruing

from loans from local fi nancial

institutions. This in turn raises

the cost of the locally blended

lubricant thereby making the

same unattractive to end-users”.

Nigeria has since remained

a large importer since the fi re

incident of 1995 at the Kaduna

refi nery’s base oil plant and

since then has been 100 per cent

dependent on the import of base

oil which constitutes about 90

per cent of fi nished lubricants.

The association also

explained that sub-standard and

adulterated fi nished lubricants

from other countries such as

Dubai and Turkey have been on

the increase, stressing that labo-

ratory analysis report of most of

such imported lubes reveal non

compliance to specifi cations

and standards both local and

international.

It described some of the

lubricants as outright recycled

oil with little or no additives

introduced into it.

“These lubricants are

imported with undervalued

invoicing, deluge the markets

and sold at a cheaper rate

than the genuine locally

produced ones thereby creating

unfavourable conditions for

the locally produced genuine

lubricants, which go through

further process of manufacture,

consequently selling at a

higher cost than their foreign

counterpart”, it added.

LUPAN stated that there

should be an urgent review of

duty tariff on base oil down to

fi ve per cent and that base oil

should be separated from the

current H.S CODE “2710.1939”

which houses it along with

fi nished lubricants, and given

its own H.S Code and solicits

for a higher tariff regime for all

imported lubricants to 50 per

cent minimal duty in order to

protect the local industry.

Presently there are thirty two

lubricant plants in Nigeria duly

licensed and fully operational

while about seven new plants

are soon to become opera-

tional..

Courtesy of OEM/Lube News

BASE O I LS

THEMARKETREPORTNEWS • BRIEFING • NEW PRODUCTS • TECHNOLOGY

Nigerian lubricant producers association protests high base oil tariff

7 May-July 2013 | LUBEZINE MAGAZINE

Environmental management is co-ordinated by the National Environmental

Management Environment (NEMA) in Kenya.Energie bewegt uns

1-2 April 2014 in StuttgartInformationen über: Kraft- und Biokraftstoffe Schmierstoffe Additive Grundöle

Get-together – Abendevent

Information about: Fuels and Biofuels Lubricants Additives Base Oils

Get-together

Simultanübersetzung

Simultaneous translation

dt.-engl. / engl.-dt.

Weitere Informationen / More information: www.umtf.de

Veranstalter / Organizer: UNITI-Mineralöltechnologie GmbH · Jägerstraße 6 · D-10117 Berlin

Ansprechpartner / Contact person: Edwin Leber / Carmen Fogel · Phone: +49 (0)30-755-414-400

Fax: +49 (0)30-755-414-474 · Mail: [email protected] / [email protected]

Phot

o: F

UC

HS

EURO

PE S

CH

MIE

RSTO

FFE

GM

BH

Veranstalter / Organizer Kooperationspartner /Cooperation Partners

Anmeldung /Registration

Medienpartner / Media Partners:

8 LUBEZINE MAGAZINE | May-July 2013

We encourage technical questions from our readers. Lubezine’s team of lubricants specialist will be on hand to answer your queries. E-mail: [email protected]

Synthetic engine oil, being thinner, flows faster to the components to be lubricated and therefore greatly reduces wear to the engine

FROM OUR READERSQUESTIONS O U R E X P E R T S T A C K L E

A L L Y O U R Q U E R I E S

Cement plants lubricationSee also P.12

I understand there are some applications that use hydraulic oils without zinc. Why?

Zinc-free hydraulic oils are intended for

systems with very high fi ltering require-

ments. These oils are less susceptible to

hydrolysis (decomposition of a chemical

compound by reaction with water)

and have good demulsifi cation and

airing characteristics. Modern systems

increasingly use servo valves which

often require very fi ne fi lters. The zinc

free product offers low aquatic toxicity,

reducing the environmental impact in

the event of a spill. Use of this product

gives an early measure in stopping

the ingression of zinc and other heavy

metals entering the waste water system

in the event of any kind of spill which is

disastrous.

I have been a regular user of mineral based engine oils and now I am considering switching to syn-

thetic lubricants which I under-stand are more expensive. What benefits am I likely to enjoy from using synthetic engine oils?

There are several advantages of using

synthetic engine oils:

• Synthetic engine oil may be thinner,

which reduces resistance in the engine

and improves fuel consumption.

• Thinner synthetic engine oil fl ows faster

to the components to be lubricated and

therefore greatly reduces wear to the

engine. This is advantageous especially

during the start-up where most wear is

expected to occur.

• It can also reduce the noise of an engine

with hydraulically operated valves.

• Synthetic oil evaporates less easily at

high temperatures, reducing oil con-

sumption.

• Synthetic oil is thermally more stable,

enabling it to cope longer and better

with heavy loads.

• In the long run, synthetic is cost effective

and reduces overall maintenance costs.

• It is the Lubricating fl uid for the friction

discs during start/stop operation

• It is a lubricating and working fl uid in the

automatic transmission hydraulic system

• ATF also works as a Coolant.

What are inhibitors in coolants and how do they aff ect the coolant operation?

An inhibitor is a substance which acts

as a process retardant. In coolants, it is a

chemical additive to protect metal surfaces

from corrosion. Some common types

include borates, phosphates, benzoates,

nitrites, silicates, etc. Inhibitors should be

in suffi cient concentration to provide the

necessary protection for metals to avoid

corrosion. .

What are the functions of ATF?

Automatic transmission fl uid

(ATF) is a versatile lubricant

used in automatic transmission systems,

power steering and other automotive and

industrial applications. Given the specifi ci-

ties of automatic transmissions operation,

ATF oils have the following functions:

• Acts as power transmission from the

engine to the mechanical part of the auto-

matic transmission

9 May-July 2013 | LUBEZINE MAGAZINE

For more than 60 years, Eni has been selling Agip branded lubricants around the world

BRANDS

That the East African lubricants market

and indeed most of Africa’s lubricants

market is on a growth trajectory is in

doubt. In recent years we have witnessed

many multinational brands that had previ-

ously pulled out of the region citing low

business margins, coming back through

appointed agents.

July 2, 2013 … one of Kenya’s leading

indigenous oil marketing companies, Hashi

Energy launched - in partnership with Eni

(previously Agip) -a new range of lubricants

that include Automotives, Industrial, Marine,

Greases and Specialties products that sat-

isfy lubrication requirements of any type of

machine and industrial plant.

The lubricants manufactured by Eni will be

distributed by Hashi Energy through its broad

network in Kenya, Uganda, Rwanda, Burundi,

South Sudan and Eastern Democratic Repub-

lic of Congo.

Speaking during the launch ceremony,

Hashi Energy Chief Executive Officer, Dr.

Mohamed Adan noted that the lubricant

lines which cover many applications like cars,

motorbikes and trucks have been developed

to specifi cally meet all technical needs and

requirements of the Kenyan market and other

East African markets.

“At a time of great technological specializa-

tion, in which the evolution of engines has led

to the lubricant becoming a real component

of the engine, the vast and diverse range of Eni

lubricants is able to provide the right response

to the lubrication needs of every engine and

the needs of each user,” he said.

“The Kenya Vision 2030 Blue Print has

identifi ed the Energy sector as a key founda-

tion and one of the infrastructural “enablers”

upon which the economic, social and political

pillars of this long-term development strategy

will be built. It is therefore imperative that

players in this sector consistently bring on

board initiatives that will support these pil-

lars,” said the Chief Guest Mr. Davis Chirchir,

Cabinet Secretary for Energy and Petroleum.

For more than 60 years, Eni has been selling

Agip branded lubricants around the world.

They have recently been rebranded “Eni”

F E A T U R EC O M P A N Y

Hashi Energy launches new range of Eni’s lubricants

About Hashi EnergyHashi Energy is a private company and one of the oldest indigenous oil marketing companies in Kenya with over 20 years in operation. It invests primarily in petroleum imports and exports, bulk trading, petroleum depots, distribution and service stations. With the aid of cutting-edge technologies and modern infrastructure, Hashi Energy aims to consolidate its position as the market leader in the Petroleum sector in the region. The company has grown to become a major player in the Oil business supplying over 480 million liters’ of petroleum products annually to the East African region. With a capacity to supply 600 million litres per year, Hashi Energy is a stable brand with operations in Kenya - Mombasa, Nairobi, Eldoret and Kisumu; Uganda, Tanzania, Rwanda, South Sudan, Zambia and DRC. www.hashienergy.com

About EniEni is a major integrated energy company committed to growth in the activities of finding, producing, transporting, transform-ing and marketing oil and gas, electricity generation and sale, petrochemicals, oilfield services, oilfield construction and oilfield engineering. In 2012, Eni was ranked 17th in the Fortune Global 500 list of the world’s largest companies. Eni has global operations in 90 countries and employs approximately 78, 000 people.

following a decision to consolidate all opera-

tions and products under one brand. Eni has

always played an active role in the research

and production of high performance lubri-

cants for all types of engines.

According to Hashi Energy, Eni lubricant

production cycle operates in accordance

to a certified quality management system

in conformity with standard UNI EN ISO

9001:2008 and certifi ed Environment Man-

agement System in conformity with stand-

ard ISO 14001. Further, Hashi Energy/Eni

lubricants and services are backed by highly

qualifi ed technical manpower both from Eni

internationally and Hashi Energy locally that

ensures outstanding technical back up and

support services to customers that provide

security in total customers’ satisfaction and

peace of mind. .

L-R Davis Chirchir Cabinet Secretary Energy and Petroleum and Luca Arcangeli Vice President ENI, Mohamed Adan CEO Hashi during the launch.

10 LUBEZINE MAGAZINE | May-July 2013

B etter logistics create benefi ts for local

business and are vital for its competi-

tiveness. A decade ago, the word

‘fl exitank’ was not familiar, even among those

quite knowledgeable about bulk packaging

technology. However, since 2000, there has

been unprecedented expansion of this new

and effi cient method of transporting liquids.

The growing popularity of fl exitank has been

demonstrated by the increasing numbers of

flexitank shipments and volumes shipped

globally.

The fl exitank market has been expanding

at a rate of 20% per annum on average over

the last seven years. This is due not only to

the product’s obvious advantages over other

packaging/transporting options, but also to

certain market trends:

Depressed economies are a major market

driver of increased fl exitank usage because

fl exitanks are cheaper than alternatives and

most companies are under pressure to reduce

cost of delivered product.

The fast growing emerging markets often

lack logistics infrastructure. Flexitanks

present a cost- and time-effi cient method of

transporting non-hazardous liquids to desti-

nations which cannot be reached by tankers

or larger volumes carriers. Environmental

concerns and regulations put pressure on

companies, forcing them to reduce volume

of packaging and the impact of their supply

chains on the environment. Flexitank is

single-use packaging and part of its material

can be recycled.

The weakness of key consumer sectors

(such as automotive) forces industrial con-

sumers in the lubricant industry (which

represents about 43% of fl exitank deliveries)

to reduce stocks in order to limit exposure to

market volatility and to order smaller volume,

i.e., using fl exi-tank rather than regular cargo.

Other major fl exitank consuming indus-

PRODUCT HANDLING

F E A T U R EL O G I S T I C S

By Irina Lagereva, Marketing and PR at Shamrock Shipping and Trading

Shamrock Shipping and

Trading is an international non-aff iliated trader and distributor, focused on petroleum products and petrochemicals, including Group I, II, and III base oils, pale oils, advanced additives and finished lubricant. Our core business is supported by a number of related services, which include sourcing, trading, processing, refining, transportation, storage and financing. This diversity enables us to control the whole process of product movement from producer to end-user, guaranteeing fast and reli-able deliveries to all of our customers world-wide. Shamrock is an ISO certified company (ISO 9001:2008), all Shamrock products are registered in accordance with REACH legisla-tion, Shamrock is a member of North American ILMA (Independent Lubricant Manufacturers Associa-tion) and UEIL (Independent Union of the European Lubricants Industry.

Shamrock has its regional representatives in Africa, Central and South America and Southeast Asia. In 2012 Shamrock has started its representative off ice in Canada, ON in addition to its Cyprus-based head off ice. In 2013 a new off ice will be open in Dubai (UAE).

Flexitanks: Logistic challenges turned into competitive advantages

tries – like wine and vegetable oils, with

about 20% and 27% of the market respec-

tively – depend on sourcing product largely

on a global basis. With the current economic

slowdown, the manufacturers are looking

for cost-effective ways to handle shipping

and logistics.

Modern fl exitanks overcome many of the

problems associated with ISO tank contain-

ers, IBCs, or drums. Our customers prefer

fl exitank because of its major advantages:

Bigger capacity: Due to its fl exibility, every

inch of container space is available allowing

the shipment of 31% more content than with

IBC, totes, and drums.

Delivery period is as fast as bulk cargo.

No signifi cant cash involvement: No price

risk (prompt loading and short transit time).

Lower positioning costs: Less need for pack-

aging, handling, and loading; and no return

freight costs.

‘Eco-friendly’ packaging: The polyethylene

material of the flexitanks can be recycled.

Indeed this plastic material can be melted

down and re-used almost indefinitely for

making products.

Flexitank can be used for storage: Either

temporary or even as an alternative to a per-

manent storage tank.

Integrated service: Shipping containers

can be transferred to trucks, so fl exitank can

serve as a cost-effective door-to-door package

for deep inland and diffi cult to reach destina-

tions.

11 May-July 2013 | LUBEZINE MAGAZINE

Environmental Auditing for Service Centres

See also

P.14

Flexitank is a flexible container with a standard capacity of 14,000–24,000 litres, installed in a 20-ft. ISO ship-ping container. Depending on its construction material, flexitanks can be used for transporting most types of non-hazardous cargos. While being unloaded, heating pads are used for temperature-sensitive cargoes.

Flexitanks are constructed both single-layered and multi-layered. They can be made from diff erent materials but typically polyethylene. In addition, top/bottom options for loading and discharge are available.

Shippers should speak to a flexitank operator to determine the most suitable type of flexitank to ship their particular product. Flexitanks were introduced in mid-1970s by U.K. shippers.

The first users of flexitanks were chemical suppliers, looking for lower tare weight compared to metal drums, which later also became a serious environmental issue. In the early 1990s, rubber tanks were replaced with those made of thermo-plastic (PVC) materials. In late 2001, flexitanks made from multi-ple layers of thin polyethylene entered the market and flexitank transport became a one-way disposable market (95% of today’s market). The flexitank industry is currently developing globally recognised standards for performance, safety, and quality of containerised flexitank shipments.

The first flexitank Code of Practice – featuring container selection, testing, marking and labelling, incident manage-ment and insurance and training – was published by the Container Owners Association (COA) in 2009, followed by a revised edition in 2011. .

Flexitank deliveries also allow our com-

pany to offer fi nancing solutions, including

deferred payment conditions, resulting in real

cash benefi ts for our customers. Our portfolio

of customers includes many companies from

Africa and Latin America. The regional mar-

kets in these locations suffer from inadequate

infrastructure and fl exitank is often the ideal

solution for them. Through the use of fl exi-

tank, there is tremendous growth potential in

these regions for both our customers and us.

According to World Economic Forum’s

Global Competitiveness Report 2012-2013,

transport and logistics costs in most of

Africa’s landlocked countries are excessively

high, accounting for 20–60% of the prices of

delivered goods. Furthermore, the average

cargo waiting time is 20 days. More than

half the time needed to transport cargo from

ports to cities in landlocked countries in

sub-Saharan Africa is wasted because of the

time spent in ports. The dwell time can be a

signifi cant source of revenue for storage and

logistics operators, while the time ineffi cien-

cy is commonly charged to the customers.

Regional and local businesses in Africa face

this most serious obstacle to their successful

development and competitiveness.

Our company has been supplying African

clients with base oils, lubricants, and pet-

rochemicals drawn from the most reliable

producers around the world for more than

fi ve years. Dealing with our local customers

on a daily basis, we understand not only the

potential and power of the market but also the

vulnerability of the local business. Economic

growth in Africa is on the increase. Local busi-

nesses need to establish easy and smooth trad-

ing connections within the continent as well

as with the rest of the world. Accordingly,

modern logistics solutions strive to turn these

challenges into real competitive advantages.

Flexitank is a unique, modern, and cost

effective solution to deliver liquid goods

easier and faster even to landlocked coun-

tries and diffi cult to reach destinations. For

example, in 2012 shamrock volumes in

Africa almost doubled and a notable growth

was demonstrated by flexitank deliveries

with signifi cant geographical expansion and

increase of volumes supplied.

Logistics are a key aspect of the chemical

industry because production and consump-

tion locations are usually separated. Effi cient,

competitive, and sustainable logistics are

therefore of great importance for future

development. We believe that fl exitank is a

good solution for better logistics; it creates

benefi ts and boosts competitiveness for local

businesses in emerging markets, including

African and Latin American countries. .

Facts about Flexitanks:

12 LUBEZINE MAGAZINE | May-July 2013

Recently the

East Afri-

can region

has seen an

increase in housing

and infrastructure

projects. Invariably

this has led to a boom

in the cement indus-

try. New plants such

as Savannah Cement

in Kenya have recent-

ly come up in a bid

to meet the region’s

growing demand for

cement.

One of Africa’s

blue chip cement

companies, the West African Dangote

cement has also noticed the rising demand

for cement and is busy setting up a 1.5MTpa

capacity cement plant in Tanzania.

A rise is cement producing plants is music

to the ears of oil producers as it represents

increased market for their products. We look

at how cement plants are lubricated.

Cement is manufactured by heating a

mixture of limestone, clay and Alumina to

produce clinker by the process known as

calcining. Limestone is the source of calcium

while Alumina is the source of sand. The

clinker is ground with gypsum which is the

source of sulphate.

Cement is manufactured by either a Wet

process or Dry process. In the wet process,

water is added and the resultant slurry is

transported through covered conveyers to

the Kiln.

Prior to a Lubrication survey, we can break-

down the lubrication at Cement Plants into

5 segments.

1. Quarry

2. Raw materials processing

3. Kiln

4. Cement grinding

F E A T U R ET E C H N O L O G Y

PLANT MAINTENANCE

Cement plants lubrication

5. Packing

6. Independent Power Production

7. Automotive Section

QuarryLimestone, is the single large raw material

used in the manufacture of Cement. Cement

Plants are located next to the limestone

deposits and Quarries are set up to ensure

economics in getting this vital raw material.

Open cast quarries for mining are utilized in

the quarries.

The operations involved include blasting

to open the rock, drilling, which helps in

accessing the rock, dumping, dozing and

haulage of the loosened rocks and boulders of

limestone within the quarry and to the plant.

During drilling and blasting, holes are drilled

on the limestone face and explosives placed

in it. The controlled explosion loosens the

James Wakiru is a lubricants and lubrication specialist and has been involved in lubricants market development activities for the past 12 years

By James Wakiru

limestone and Excavators used to gather the

limestone. This is then transported by Dump

trucks or Lorries to the Limestone processing

unit in the Cement Plant.

In bigger cement plants, the limestone

may be hauled from mines to the plant by

a conveyer system and a first stage rock

breakdown may be taken up with use of Jaw

crushers either at the limestone mine or at the

cement plant.

RAW MATERIALS PROCESSING SECTION:

Crushing and grinding: The limestone rocks that have been transport-

ed from the mines are kept in the yard after

preliminary breakdown and sizing in Crush-

ers and Hammer Mills, to around 3 inches

in diameter. This is then sent by conveyers

13 May-July 2013 | LUBEZINE MAGAZINE

towards the rotary kiln. Clay, Alumina and

Gypsum are introduced and blended in the

line, in the required proportions. The blend-

ing is further complimented as the mixture

goes through a series of Ball mills. The process

accomplished by the ball mills is termed as

grinding. The material from this process is

fi nely ground to a slurry. Once the blending

of the raw materials is complete the product is

ready to enter the rotary furnace or kiln.

Kiln - Rotating furnace Section: The kiln or rotary furnace is a vital part of the

cement plant and is tilted slightly to ensure

fl ow of material to the exit direction. The kiln

is supported on massive Girth Gears, where a

sophisticated lubrication dispensing system

and Specialty Lubricants are used. Calcining

or sintering is a process where the raw mate-

rial from the ball mill is heated to a tempera-

ture of approximately 1500o C.

The fi nely ground raw material or the slurry

is fed into the higher end of a kiln. The kiln

process converts calcium and silicone oxides

into calcium silicates, which are the cement’s

most important ingredients. As the material

moves through the kiln, certain elements are

driven off in the form of gases. The remaining

elements unite to form a new substance with

new physical and chemical characteristics.

The new substance, called clinker is formed

in pieces about the size of marbles.

The kiln system has three critical sections:

Section I: Drying and preheating section

which operating at 20oC to 900oC

Section II: Calcining section operating at

600oC to 900oC

Section III: Burning section operating at

1200oC to 1480oC which produces clinker.

Cement Grinding Section: The clinker passes through the precipitation

process where a clinker cooler hammer mill

is used, it is cooled on-line and blended with

gypsum. It then goes through the grinding

process where it is ground to the specified

specifi cations. Here a plant may have a hori-

zontal axis mill which may have enclosed

gearboxes or open gears. The fi nished product

which is now cement, is then conveyed to

large holding tanks called Silos.

Packing and palletizing The finished product is conveyed via a

conveyor to the packing and palletizing

section.

There are two kinds of cement packing

Quarry section

Equipment Lubricant usedLarge mobile equipment like Dumper,

Lorries, Dozers, Excavators, Back hoe

Engine oils, Hydraulic Oils, Transmissions Fluids, Automotive Gear Oils,

Greases, brake fluids, radiator coolants, High pressure pin greasing

Rock drills Rock drill oils, Hydraulic oils, semifluid greases

Conveyor belts(Gear boxes, head, tail and

tension bearings, hydraulic system)

Gear box oils, Roller bearing grease,

Compressors Hydraulic oils, Compressor Oil (Reciprocating and Screw)-Can be Synthetic

or Mineral

Pneumatic system Air Line Lubricant (Pneumatic)

All grease points Multi-Purpose, EP type and Graphite or Molybdenum disulphide grease for

anti seize of threading in drilling rods.

Crashing and grinding section

Equipment Lubricant usedCrushers can be jaw or cone type Open gears

Mills Hammer Mills, Ball mills Gear box, Motors

Conveyers systems Greases-All Purpose and EP type.

Roller presses Greases(EP), Gear oils

Girth gear Hydraulic oils(Syn or High VI mineral)

Synthetic semi-fluid grease, bituminous based semi-fluid grease

Open gear Greases and Lubricants

Gear Oil, Gear oils(PAO or Mineral), Lithium complex grease(EP)

Kiln - Rotating furnace Section:

Equipment Lubricants usedConveyers, Coal Mill, Kiln, Girth Gear, Specialty Grease for Girth gears(Synthetic semi-fluid grease or bituminous

based semi-fluid grease), Gear oils, Greases - All Purpose, EP type, High

temperature Grease, Specialty Girth Gear Lubricant

Kiln tyres, Rotating Furnace, gear boxes Gear Oil, Greases – Multi-Purpose, EP type, High temperature Grease,

Specialty Girth Gear Lubricant(Synthetic like PAO based or bituminous

based)

Cement Grinding Section

Equipment Lubricants usedConveyers, Coal Mill, Kiln, Girth Gear, Specialty Grease for Girth gears(Synthetic semi-fluid grease or bituminous

based semi-fluid grease), Gear oils, Greases - All Purpose, EP type, High

temperature Grease, Specialty Girth Gear Lubricant

Kiln tyres, Rotating Furnace, gear boxes Gear Oil, Greases – Multi-Purpose, EP type, High temperature Grease,

Specialty Girth Gear Lubricant(Synthetic like PAO based or bituminous

based)

Cement Grinding Section

Equipment Lubricants usedBall mills, conveyers, ID Fans Gear Oil, Greases- All Purpose, EP type, High temperature Grease(Synthetic

or Lithium Complex based).

Gear Oil, Greases – Multi-Purpose, EP type, High temperature Grease,

Specialty Girth Gear Lubricant(Synthetic like PAO based or bituminous

based)

Packing and palletizing section

Equipment Lubricants usedPneumatic systems Airline lubricants

Gears Gear oils, hydraulic oil, semi-fluid greases

Bearings Greases

Independent Power supply unit

Equipment Lubricants usedDiesel powered generators

(LSHS,HFO,AGO )

Trunk Piston engine oil-High TBN (40), Normal Multi-grade engine oil,

Marine Engine Oils, Turbine Oils, Gear Oils, Greases- All Purpose, EP type

Gear oils, hydraulic oil, semi-fluid greases

Coal Thermal Power Plants: Turbine Fluids, Greases, All Purpose, EP type Greases.

Automotive Section

Equipment Lubricants usedAuto motive Workshop – Lathes, drilling

machines, welding machine, cranes, fork lift.

Trunk Piston engine oil-High TBN (40), Normal Multi-grade engine oil,

Marine Engine Oils, Turbine Oils, Gear Oils, Greases- All Purpose, EP type

Water emulsible cutting fluid, hydraulic oils, transformer oil, EP greases,

Engine oil, Gear oils

Mobile equipment Turbine Fluids, Greases, All Purpose, EP type Greases.

Engine oil(Synthetic or Mineral), Transmission oil, Hydraulic oils, Gear oils,

Greases, ancillary products like brake fluids, coolants etc.

LUBRICANTS MAPPING FOR CEMENT PLANT

14 LUBEZINE MAGAZINE | May-July 2013

The lubrication industries fall under

the petroleum industry have con-

tinued to expand and grow; while

its impacts on the environment are

also on the rise. The industry is involved

with maintenance servicing within the

motor industry, and uses products whose

composition includes oil and grease among

others, with the main components being

extracts and synthetically prepared petro-

leum products. Other ingredients also used

contain many other chemicals and compo-

nents like heavy metals.

Investments in the industry involve the

development of service centers, which can

be easily monitored when it comes to envi-

ronmental risks and threats.

The establishment of such service centers

is subject to an initial Environmental Impact

Assessment upon which the recommenda-

tions for the environmental consideration

during the development and operationaliza-

tion are captured. After the initial Environ-

mental Impact Assessment and during the

operational phase of the establishment,

under the Environment Management and

Coordination Act (EMCA 1999), they are

required to undertake regular annual envi-

ronmental in the form of Environmental

Audits.

However, despite the industry is a lucra-

tive one and of great economic importance, it

poses very serious environmental concerns

if appropriate mechanisms are not taken

into account during operations.

The two most serious issues are spill-

ages and leakages of the products especially

during servicing and handling of the used

lubricants such as oils.

Most of the service centers can be catego-

rized as point sources of pollutions going by

the trend of reckless discharge of pollutants

to the immediate environment especially in

the semi-formal establishments. Such kinds

of practices are environmentally unaccep-

table and subject to prosecution in a court

of law.

machines:

Spiral cement packing plant: Utilises

a spiral conveyance of bulk cement. This

system has pneumatic components such as

air compressor, valves which enhances auto-

mation of cement bag compaction, loosening

and bag delivery using electromechanical

systems.

Rotary cement packing machine: Utilised

to reduce problems like measurement and

leakages of the cement which reduces the

maintenance costs.

The fi nal product is shipped either in bulk

(ships, barges, tanker trucks, railroad cars,

etc.) or in strong paper bags which are fi lled

by machine.

The conveyors utilized in this section have

drive gearboxes, and head, tail and tension

bearings.

Independent Power supply unitPower supply is critical for cement plants

since they are power intensive. Sometimes

the power from the National grid or local

utility provider may be insuffi cient or erratic

hence the need to have an alternative power

supply.

Many cement plants have set up independ-

ent power supply units to this end.

Most of the independent power plants are

diesel generators which may run on Diesel,

Fuel oil or IDO. Some large cement plants

have set up coal fi red thermal power plants.

Automotive SectionIn the automotive section, all the mobile

equipment are maintained and serviced here.

This includes the earth moving equipment,

trucks and fork trucks. .

Environmental Auditing for Service Centres

ExplanationEnvironmental auditing (EA) refers to

systematic procedures used in assessing the

environmental performance and compli-

ance of establishments. It is applied as an

effective tool to monitor operations and

identify possible environmental implica-

tions that may arise from the existence and

undertakings of a facility, as per the EMCA

act. Through the evaluation, the intentions

are to identify environmental conformance

issues and the environmental management

systems implementation gaps among other

concerns. The nature and signifi cance of any

negative environmental effects are analyzed

thus facilitating the development of appro-

priate mitigation measures. Projects required

to undertake regular Environmental Audits

like those in the lubrication industry are

encouraged to do so not just for compliance

with the law but also to facilitate timely and

adequate measures to address existing and

emerging environmental problems. The

overall objective of Environmental audits is

to maintain the lowest level of implications

from any economic activity, making the

process a vital tool in decision making and

enhancing the realizations of sustainable.

RationaleThe environment is the base for social and

economic development and progress, with

almost all the resources used extracted from

the earth including crude oil. Thus, the impli-

cations of the lubrication industry begin in

the early stages of raw materials extraction

and continue all the way to the disposal of

used products and waste. Exploiting the

resources and products is inevitable, hence

mechanisms need to be in place to monitor

and manage the activities within the sector.

This is to ensure that the potential issues/

threats are mitigated without compromis-

ing the economic potential of the industry.

The industry poses a variety of environ-

mental risks and threats majorly because

the products therein are of oil origin, with

potential to cause devastating environmen-

tal pollution and degradation. Environmen-

EHS

By Lucie Wanjohi

Kiln and silo in a cement plant.

15 May-July 2013 | LUBEZINE MAGAZINE

tal hazards involved in this sector include

contamination of the ground/soil and water

bodies (ground and surface). Treatment levels

especially by use of heavy metals raise the

potential impact with the results being:

• Ill health for humans, plants and animals

with fatality possibilities

• Loss of biodiversity like burrowing ani-

mals, small mammals and aquatic animals

• Contamination of water, surface and

ground, rendering it less useful

• Loss of land fertility and toxication of soil

composition

• Eyesore sighting and degradation of aes-

thetic value of land

The approach taken for environmental

auditing embraces the evaluation of checks

and balances using set and designed environ-

mental criteria and standards.

NecessityCurrently environmental audits are a legal

requirement for various sectors of the econo-

my including the petroleum industry under

which lubrication ventures fall. They are con-

ducted as per the standards provided for in the

environment management and coordination

act (1999) in line with other sectorial laws. The

main aim is to ensure that operations within

the industry are properly undertaken, taking

into consideration the need to preserve, pro-

tect, and conserve the environment by:

• Utilizing resources sustainably

• Adopting appropriate environmentally

friendly technologies in operations

• Mitigating against possible pollution/

degradation through leakages and spills

• Developing appropriate waste manage-

ment procedures

NEMA Kenya is the national agency of the

government mandated to coordinate all envi-

ronmental matters including the enforcement

of compliance to environmental regulation

and standards. It is the principle administra-

tor of the environmental auditing and assess-

ments activities; they undertake reviewing the

projects reports, approving or rejecting them

and providing improvement orders. They have

the power to register environmental experts

(recommended to undertake the auditing and

assessments). NEMA also conducts environ-

mental inspection using their fi eld enforce-

ment/ extension offi cers. They are mandated

to take legal action up on those who violate

environmental matters as established under

the environmental laws and policies, includ-

ing the failure to conduct and submit the

annual environmental audit before the end of

each year.

Procedure description and structure

The procedure for undertaking an Envi-

ronmental Audit is very similar to that of

conducting an Environmental Impact Assess-

ment with the Environmental Audits skewed

towards the monitoring and evaluation of the

compliance and application of management

plans recommendations. The methodology

of conducting the environmental audits is as

follows:

1. Pre-audit phase: develop an audit plan for

the on-site activities; and make arrange-

ments and preparations for the on-site

auditing and involves:

• Audit plan development including the

objectives and criteria

• Preparation of materials e.g. reviewing

previous assessments/ audits

• Screening to establish if there is need to

F E A T U R EE N V I R O N M E N T A L

subject the premises to an environmen-

tal audit

• Scoping to identify the contents and

extents of matters to be covered

2. Conducting the on-site audit with the aim

of collecting relevant data for analysis and

evaluation to establish the compliance and

management levels and gaps, includes:

• Data collection and recording

• Stakeholders involvement

• On-site recommendations and observa-

tions discussion

3. Post audit phase involves the fi nal stages

of the auditing process, capturing and

interpreting the outcomes of the audit, it

includes:

• Analysis and review of the fi ndings

• Preparation of the audit reporting

• Lodgment with the relevant institutions

i.e. NEMA

• Follow-ups and consultations .

16 LUBEZINE MAGAZINE | May-July 2013

I N O T H E R W O R L D SB Y J O S E P H N D U N G U

C astrol has partnered with TomTom,

a leading provider of navigation and

location-based products and services

to study the impact of “stop-start” driving

patterns across the world. A report high-

lighting the impact of stop-start driving in

50 cities and regions around the world will

be published by Castrol and TomTom in

September 2013.

Castrol’s studies already show that

drivers can experience as many as 18,000

stop-starts every year. The pioneering study

that Castrol is undertaking with TomTom

will discover the number of stop-starts

in different cities around the world, and

TomTom will use its precise travel and

traffi c information to analyse driving

behaviour across the entire road network,

all over the world.

Gareth Bracchi, Senior Development

Technologist at Castrol, commented:

“Stop-start traffi c is a global issue that not

only affects journey times, but all that

idling in traffi c and waiting at junctions

causes microscopic wear in engines. By

partnering with TomTom, we’ll be able to

accurately measure the stop-start average

per kilometer within defi ned city limits,

discover what cities have the heaviest traf-

fi c, and show which city’s drivers are most

at risk of damaging stop-start wear.”

Ralf-Peter Schäfer, Head of Traffi c at

TomTom added: “This partnership makes

perfect sense, as both TomTom and Castrol

aim to make the lives of our customers run

as smoothly as possible, whether that’s

on a daily commute, the school run or a

weekend road trip. We are very excited to

be working with Castrol and look forward

to sharing the fi ndings from this study.”

The study will uncover the traffi c condi-

tions in 50 key cities and regions around

the globe, including North America (New

York), Australia (Sydney), Asia (Beijing,

Bangkok, Jakarta, Kuala Lumpur), Russia

(Moscow), Brazil (Rio de Janeiro) and

Europe (London, Istanbul) and Hong Kong.

Founded in 1991 and headquartered in

Amsterdam, TomTom, a leading provider

of navigation and location-based products

and services. TomTom maps, traffi c

information and navigation technology

power automotive in-dash systems, mobile

devices, web based applications and

government and business solutions, has

3,500 employees worldwide and sells its

products in over 35 countries. .

Castrol Partners with TomTom to study impact of stop-start driving

TECHNICAL PARTNERSHIP

Stop-start traffic is a global issue that not only affects journey times, but all thatidling in traffic and waiting at junctionscauses microscopic wear in engines

Early morning traff ic jam in the

city of Nairobi.

17 May-July 2013 | LUBEZINE MAGAZINE

Eni and the Piaggio Group have

renewed their technology, industrial

and commercial partnership agree-

ment for 2013-2015. The announcement

was made by the two companies during a

press conference held at the Autodromo

Internazionale Enzo e Dino Ferrari in Imola

during the second Italianround of the Eni

FIM Superbike World Championship.

The agreement, signed for the fi rst time

in 2006 and reaffi rmed in 2010, will see Eni

and the Piaggio Group striving to improve

the competitiveness and performance

of high-tech fuels, lubricants and other

speciality Eni products which the Piaggio

Group brands (Piaggio, Vespa, Aprilia,

Moto Guzzi, Gilera, Derbi, Scarabeo,

Piaggio Veicoli Commerciali) use in their

engines. Another goal of the partnership

between Eni and the Piaggio Group is to

TECHNICAL PARTNERSHIP

Eni renews its technology, industrial and commercial partnership with Piaggio

consolidate and further develop mutual

activities in emerging markets in Southeast

Asia and in the Far East, which currently

represent a major world market for two-

wheeled vehicles. The collaboration in the

fi eld of racing is also ongoing: Eni, a leading

technology partner of the Aprilia Racing

team is the offi cial supplier of fuels and

lubricants for Aprilia and also sponsors the

Aprilia RSV4 bikes of Eugene Laverty and

Sylvain Guintoli.

The Eni FIM Superbike World Cham-

pionship racetrack, just like racetracks

all over the world, offers Eni an excellent

opportunity to test its fuel and lubricant

products under extreme conditions before

producing them on a large scale.

Finally, in its efforts to meet the com-

mercial needs of the manufacturer, Eni has

developed a range of customised products

named i-Ride Piaggio Group, which rounds

off the range of i-Ride.

The Piaggio i-Ride range is a spectrum

of products intended for all kinds of

2-stroke and 4-stroke two-wheelers from

the Piaggio* group. This range includes

all the products required for the operation

and maintenance of two-wheelers:engine

oils, brake fl uids and coolants, fork and

transmission oils. .Source ; OEM/Lube News

Lubrication in the food and beverage industrySee also P.20

The partnership strives to improve the competitiveness and performance of high-tech fuels, lubricants and other speciality Eni products which the Piaggio Group brands use in their engines

18 LUBEZINE MAGAZINE | May-July 2013

F E A T U R ER E C Y C L I N G

With an innovative design of an

efficient industrial chamber,

Anselm Croze literally puts

what might seem useless

waste into amazing use in a process that

results in beautiful objects and creates sev-

eral employment opportunities, meanwhile

conserving the environment by disposing off

a considerable volume of harmful oil waste in

an environment-friendly way.

His trade consists in glass, which he melts

in a hot furnace, modelling the material--at

high temperatures--into beautiful objects

in an exciting local glass art industry, with

evident pointers to further future growth

in the industry that is relatively small in the

country.

Interestingly, the glass raw material he

uses consists of waste glass collected and

recycled to make fi ne fl ower vessels, window

glasses, utensils, among other articles. This

way, Croze also contributes to environmental

conservation efforts aimed at ensuring the

environment is well rid of waste glass that

would otherwise pose environmental haz-

ards by re-using it as part of the raw material

he requires to sustain his production.

But even more curious is his innovative

approach to powering the furnace, which –in

part—is able to generate temperatures suf-

fi cient to melt glass on account of used oil

,which is considered useless waste or put to

wrong use by many lubricants end users.

The furnace heating system itself entails a

lofty mast-like structure with two tanks atop

(one filled with used oil, the other water),

placed at different heights, and a long hose

that directs the used oil, driven down by grav-

ity pressure from the tank, to burn inside the

furnace and melt glass at the hose’s nozzle tip,

fi tted with a regulation tap. The water, on the

other hand, is used to pre-heat the used oil as it

approaches the nozzle burner to make it more

fl ammable.

For this edition, Lubezine magazine paid

Anselm Croze’s Kitengela Hot Glass Limited

a visit to see his innovative used oil-powered

furnace model in a bid to explore environ-

ment-friendly methods that can be used to

get rid of used oil, besides getting an insider

insight regarding how the collection and

re-use of used oil can be made smooth.

Located in Nairobi’s Rongai area, Kitengela

Hot Glass Limited was established sometime

in 1994, during a time when Tuala area --the

exact location of the fi rm—including the sur-

rounding areas was off the national grid. The

RECYCL ING

Anselm Croze: Innovator who uses oil waste to make beautiful objects

By Hesborn Nyakundi

Anselm Croze

19 May-July 2013 | LUBEZINE MAGAZINE

Presently there are 32 lubricant plants in Nigeria duly licensed and fully operational while about

seven new plants are soon to become operational. P.6See story

Kitengela Hot Glass Limited provides an example of how innovation can put used oil to profitable use

that the market is bound to expand even

further as demand for lubricants and lubrica-

tion solutions is expected to rise in tandem

with the projected growth within the indus-

trial and transport sectors. With an annual

lubricants usage in the excess of 40 million

litres, the used oil generated in the Kenya is

estimated to be in the neighbourhood of 30

million litres.

Lubezine magazine has established that

despite efforts by government agencies to

ensure that used oil is properly disposed off,

pollution continues to happen as mechanics

and even industrial players get rid of used oil

in utterly environmentally unfriendly ways.

Legislation has clearly failed, and if nothing

more is done, we shall only hope for innova-

tions — such as Croze Anselm’s -- promising

an enduring solution to effective disposal of

used oil.

Kitengela hot Glass Limited provides a

fabulous example of how innovation can put

used oil to profi table use, fortifying environ-

mental conservation efforts and providing

exciting employment opportunities in the

process.

We can now also report, based on our

random fi eld analysis, that many handlers of

used oil have little or no information on the

hazards of used oil, or when it is not handled

accordingly as several end users of oil dump

the resulting waste into rivers, oblivious to

the attendant dangers.

According to a study conducted by the Uni-

versity of Nairobi in 2011, pollution resulting

from used oil continues to happen unabated

in the country, contaminating a huge volume

of water that ends up being used for domestic

purposes. The study suggests a remedy: that

with proper co-ordination and collaboration

between oil dealers and by the government,

the pollution can be scaled down by a wide

margin through redirecting the waste to

re-use and re-refi nery.

‘Used oil that is properly handled can be

re-refi ned into lubricants, processed into fuel

oils and used as raw material for the refi ning

and petrochemical industries’, suggests the

study.

But are these conventional methods of

handling and re-use of used oil implemented

in Kenya?

With his relatively long experience dealing

in used oil, Anselm Croze reckons that more

needs to be done. He raises concerns over a

ring of unscrupulous cartels in the oil waste

market who either use it to counterfeit genu-

ine oil or sell it to unsuspecting consumers as

furnace oil.

‘The cartels offer to collect the oil waste

from many of the used oil collectors at a price

that is higher than what a genuine recycler

can offer and that makes collecting the oil dif-

fi cult especially in the face of threats from the

elaborate network of the dishonest dealers,’

he says.

To facilitate a smooth process of collect-

ing and re-using used oil, in the interest of a

genuine lubricants market in the country and

the environment, Anselm Croze says govern-

ment agencies such as the National Environ-

mental Management Agency (NEMA) should

do more in tracking the disposal of used oil, a

practice common in the developed countries.

‘In other countries, gas stations are encour-

aged to collect used oil for a supply discount

for proper disposal and there is no harm if that

is adopted in Kenya’, he pointed out.

With simple measures Kenya – like many

other countries--can ensure proper disposal of

used oil to ensure a clean environment and

ensure its maximum environment-friendly

use through recycling and innovative end

uses along Anselm Croze’s model. .

company started off with Industrial Furnace

Diesel (IFD) and has been supplementing it

with used oil for the past four years.

‘’When we started, we were basically off the

grid. So we had to seek out cheap and sustain-

able alternative sources of energy to execute

our operations and that was how we fi nally

settled on used oil as it was readily available

and it proved an effi cient heating agent to use

in the furnace’’, explained Croze in the course

of our interview, adding that used oil could

generate heat up to 1500 Degree Centigrade

in the furnace.

‘However, the temperature is constantly

monitored and regulated to fall within the

range between which we can comfortably

work on the glass. Besides, it is a very demand-

ing fuel as it requires constant monitoring of

the furnace to ensure a consistent and opti-

mum heat balance,’ he said.

According to Croze, Kitengela hot Glass

Limited uses about 300 to 500 litres of used

oil daily, which translates to approximately

180,000 litres annually. This is a small volume

of the approximated national used oil volume

of 30Million litres produced every year but

then again signifi cant considering the waste’s

pollution capacity, particularly if it comes

into contact with water bodies.

According to scientifi c fi ndings, one litre of

used oil has the capacity to contaminate one

million litres of water, which if consumed by

human beings and even animals can create

health problems, which is why the waste

should be handled and disposed off carefully.

Kenya currently ranks highest in the East

African lubricant market, with clear signals

Glass items manufactured by kitengela hot glass.

20 LUBEZINE MAGAZINE | May-July 2013

T his particular

industry has

achieved a fair

degree of promi-

n e n c e i n r e c e n t

years, in respect

to lubrication, not

only because it is

thriving (it is one of

the few industries

where investment

continues apace) and

competition in what

is produced is fi erce,

but also for many

other reasons.

Firstly, we as con-

sumers are much

more aware of the

quality of both the

food we eat and

the drinks that we

consume. Then, of

course, there is defi -

nitely an increased

diligence on behalf

of the many manu-

facturers to ensure

that their processes

do not allow contamination from any source,

including lubricants.

Such contamination would very quickly

result in their customers, who are often

very large organizations themselves with

immense power, either removing highly

lucrative and prestigious contracts or at the

very least, enforcing temporary plant clo-

sures. There is the added pressure also coming

from the health and safety arena.

haps for the same general purpose, non-food

grade grease, which might be lithium based

being employed.

This policy may indeed lead to over-

greasing in some instances which could

potentially damages the electric motor itself.

I have studied many such plants and, surpris-

ingly, there are failures. Don’t ever forget that

un-planned down-time, due to machinery

failure, is very costly indeed.

There will be instances where an electric

motor is driving a conveyor, maybe in a bot-

tling plant, where the drive unit sits over the

conveyor. This is not uncommon in older

plants where space has become limited due

to the increased volumes required to be pro-

duced in order to satisfy consumer demand.

However, the original factory would prob-

ably not have been designed to accommodate

these volumes, and relocating to a newer,

purpose built plant is not a simple business

decision.

Therefore, in many cases, plant conveyors

do indeed pass over each other on tortuous

routes, from the initial bottle in-feed systems

through washing/rinsing, fi lling, labelling,

and packaging among others, and therefore

these drive units will indeed require a food

grade grease for the electric motor bearings.

This is because all grease will eventually be

consumed in a bearing. The question now is:

F E A T U R ET E C H N O L O G Y

By Andrew MonkMr Monk who has spent a career in the application of lubricants, is very experienced in making plants perform more eff iciently, understands the technology involved but, equally as important, understands fully how to apply lubricants to their best advantage.

I haven’t even mentioned the increased

potential for unwelcome media coverage due

to such aforementioned poor maintenance

practices, which could have the worst long-

term effects on continued profi tability of a

business. Competition amongst the many

lubricant companies, who have made the

decision to enter this arena with a range of

food grade lubricants, also plays its part.

From a lubrication perspective, the food

and beverage industry is also quite unique

because consideration must be given to two

distinct ranges of lubricants, namely food

grade and non-food grade.

Unlike any other major industry, the free-

dom to choose lubricants for each and every

application from the vast portfolio available

from lubricants companies worldwide, this

category is not always available.

Food grade lubricants will have to be used

in specific applications, which naturally

limits the choice considerably.

For this reason alone it becomes possibly

more important than would normally be the

case, to assess each application individually

as there are indeed many diverse applications

in the food and beverage industry, potentially

requiring many different types of lubricants

in order to provide for effi cient and effective

lubrication. Not every one of these applica-

tion warrants, or needs, the use of a food

grade lubricant, but those that do will need

experienced assessment

It is not uncommon, for example, to come

across a plant where all electric motors that

have the facility via a grease nipple to be re-

greased, to have a grease gun apply a quantity

at the same interval as most other bearings,

regardless of operational parameters, and per-

FOOD GRADE LUBRICANTS

Lubrication in the food and beverage industry

Drinking water production plant.

21 May-July 2013 | LUBEZINE MAGAZINE

Will the selected food grade grease be as good

as it’s non-food grade counterpart? Maybe

not, depending on the grease selected.

It has to be said, though, that polyurea

based greases are renowned as performing

very well in this application and coinciden-

tally there is a food grade variety available.

Whichever food grade grease is selected, re-

greasing frequencies will have to be looked

at and probably altered accordingly.

Whilst talking about the drive units on

conveyors, and this could be in any industry

within the food and beverage umbrella, let us

consider the gearboxes that may themselves

sit above the conveyors that they are driving.

Such a gearbox will probably be supplied

with a mineral gear oil, but this will not be

acceptable in this application.

Was the oil changed to a food grade variety

of the correct viscosity to suit the application

before use, as any leaks in the past seals will

possibly contaminate the product conveyed

below, if the products container has not yet

been sealed? If the conveyed food or beverage

packaging has been sealed at this stage, then

any lubricant leakage from above will not

contaminant the product.

However, is a mineral oil stain on the

packaging acceptable? Most probably not,

so in this instance perhaps a clear food grade

gear oil would still be used.

Consider also, the possible changes in

the viscosity-temperature relationship of a

food grade oil, as the majority will exhibit a

higher viscosity index and if the application

is located in an extreme temperature environ-

ment, perhaps a geared unit in a freezer or a

cooler or at a higher temperature in an oven,

then the viscosity of the lubricant at these

temperatures may not be anywhere near it’s

mineral oil counterpart and the question that

arises is: Is the viscosity correct at the operat-

ing temperature?

Generally, a food grade oil will possess a

lower viscosity at lower temperatures and a

correspondingly higher viscosity at higher

temperatures, although the criteria for its

I.S.O. Viscosity Grade classification (kin-

ematic at 40°C) will still be fulfi lled.

In other words an I.S.O. Viscosity Grade 320

mineral gear oil will have markedly different

viscosities at various temperatures to an

I.S.O. Viscosity Grade 320 food grade gear oil,

although both will have a viscosity of 320cSt

at 40°C. If taken into consideration, these

viscosity variations can affect the wear rates

in geared units, the frictional characteristics,

the load taken on by (and hence power con-

sumed) in electric motors, as well as the per-

formance of hydraulic systems, for example.

Quite often a different I.S.O. Viscosity

Grade food grade oil needs to be selected for

an identical application, in order to maintain

the correct operational viscosity.

It is also worth mentioning that if a syn-

thetic food grade gear oil is being used by

necessity in a gearbox where leakage could

produce a contamination risk, and perhaps

the gearbox is located very near, either the

in-feed or out-feed to an oven in, let’s say for

example a bakery, then that lubricant will

Quite often a diff erent I.S.O. Viscosity Grade food grade oil needs to be selected for an identical application, in

order to maintain the correct operational viscosity.

22 LUBEZINE MAGAZINE | May-July 2013

F E A T U R ET E C H

probably have a longer life expectancy than

it’s mineral counterpart due to its ability to be

less susceptible to heat degradation.

In this particular instance it might well be

possible to increase re-lubrication frequencies

once more. If, indeed, there is no requirement

for a food grade gear oil in this same applica-

tion, perhaps it might well be advisable to use

one, as the heat transference from these ovens

is often quite considerable.

In this way you would be using a lubricant

highly acceptable in this type of industry,

to many parties, and fulfilling a technical

requirement.

In this instance it might prove worthwhile

to perform oil analysis for a period of time to

determine the desired re-lubrication frequen-

cies. Food grade lubricants generally fall into

three well known categories in the industry,

namely H1, H2, and H3.

There have been many articles written, and

available, on the differences of these three

categories but the most commonly used is

undoubtedly H1. For many years, registra-

tion to these classifi cations was undertaken

solely by the USDA, but when this organi-

zation decided not to continue with the

authorisation process, some years ago, the

lubricants industry was amazingly left for a

short while without any issuing authority

whatsoever, until the NSF organization took

on the responsibility, but still retaining the

same categories.

In Europe there now exists an alternative

organization which can register lubricants,

namely InS Services.

The criteria for registration used by InS Ser-

vices is identical to that used by NSF because

awarding either H1, H2, or H3 demands the

same check on the ingredients in order to

verify that they conform to the FDA 21CFR

Section 178.3570 criteria.

Some industries in the food and beverage

sector have, and continue to, take the stance

that the risk to their future business of a non-

food grade lubricant being used where a food

grade lubricant should have been used is too

great to contemplate, and have made the deci-

sion to use food grade lubricants throughout

even where there may actually be no necessity

to do so, albeit with the increased overall cost

of the lubrication of their respective plants.

This is a decision that only the plant can

ever take, but advice should always be sought

from a lubrication expert as to the correct

lubricants to be used in each and every appli-

cation as the variety of food grade lubricants

available is much less than their non-food

grade counterparts and, as has already been

mentioned, their properties do, and can, vary

considerably with respect to temperature

variations.

There are many different varieties of

lubricants available that can justifiably be

classified as food grade, according to the

aforementioned categories and registered

with either the NSF or InS but, as with other

lubricants, their properties can vary consider-

ably due to their different chemical make-up.

It is not advisable to say that one H1 grease,

for example, can adequately replace another

H1 grease in the same application, as the two

may be completely different, and incompat-

ible. For example, one may have an Alumini-

um Complex base, which to be honest is quite

common in the food and beverage industry,

with a white oil incorporated and the other

may have Calcium Sulphonate Complex as its

base with a synthetic hydrocarbon oil.

Both could be H1 and both could be of an

identical NLGI 2 consistency, but they will

exhibit considerably different properties as

they are indeed different lubricants.

An Aluminium Complex based grease is

inherently quite tacky, which may not be suit-

able for every application, whereas a Calcium

Sulphonate Complex based grease exhibits

very good inherent extreme pressure proper-

ties as well as good water resistance, and very

good temperature capabilities, with some of

these properties more suitable for a particular

application.

Hydraulic systems in the food and bever-

age industry very often employ food grade

oils due to the high pressures encountered

in these systems. Any dramatic leakages due

to burst pipes will result in oil being sprayed

over a large area.

The possibility of hydraulic oil contami-

nating food or beverages is often greater than

other lubricants. Consideration must also be

given to the viscosity-temperature relation-

ships of food grade hydraulic oils as most

hydraulic systems will have been designed to

operate on mineral oils, with the correspond-

ing maintenance manuals probably recom-

mending a branded mineral hydraulic oil.

The capability of the pump, which is at

the heart of a hydraulic system, to be able to

pump the new fl uid must be assessed.

There will also be instances where it would

appear that a food grade lubricant needs to be

used but it is not practical to do so. Take, for

example, chain drives in an oven which bakes

or cooks food.

Some of these ovens operate at very high

temperatures, convey the food quite slowly,

and are naturally fairly enclosed. It may have

been a preference to use a non-food grade

chain lubricant for particular operational rea-

sons, perhaps for reasons of volatility in order

to prevent contamination of the food being

baked by the vapours from the lubricant.

Maybe the lubricant could only be applied

at one point on the chain, thereby requiring

that the lubricant has unsurpassed adhesive

and volatility characteristics in order to be

able to lubricate the linkages and pins of the

chain adequately for one complete cycle.

Maybe many food grade chain lubricants

have been tried but have not performed as

well as the non-food grade variant.

In these instances, if the decision is made

that a food grade lubricant must be used,

then it is not uncommon to re-engineer the

method of lubricant application, or enclose

the chain drive in some way so as to prevent

any contamination totally.

Perhaps ventilation would need improv-

ing? There will be an initial cost involved, of

course, but this will be very worthwhile.

The range of food grade lubricants, oils,

greases, pastes etc. seems to be ever increas-

ing with their capabilities equally covering

more applications adequately but, as with

any aspect of plant lubrication, applications

need to be assessed to make sure that not

only the right lubricant is being used, which

can perform adequately in the operational

conditions actually encountered, but that

re-lubrication frequencies are also taken into

account.

Changing from conventional lubricants to

food grade is not always as straightforward as

sometimes envisaged, and equally one food

grade lubricant may be vastly different from

another. .

Changing from conventional lubricants to food grade is not always as straightforward as sometimes envisaged, and equally one food grade lubricant may be vastly different from another

23 May-July 2013 | LUBEZINE MAGAZINE

W orld demand for lubricants is

expected to increase by 2.3 percent

per year to 43.9 million metric tons

in 2017. The fastest growth will be in Asia,

supported by rising vehicle ownership rates

and ongoing industrialization in large coun-

tries such as China. Above average increases

will also occur in South America, the Middle

East, and Africa. These regions will each

experience healthy economic growth, rising

manufacturing output, and expanding motor

vehicle parks -- all of which will contribute to

gains in lubricant consumption. In contrast,

demand will remain nearly fl at in the devel-

oped countries of North America and West-

ern Europe, where effi ciency gains will offset

the effects of rising economic and industrial

output. Although volume growth will be

restrained in these regions, lubricant sup-

pliers will benefi t from increasing demand

for premium, high-value products such as

synthetic and bio-based lubricants. These

and other trends are presented in World

Lubricants, a new study from The Freedonia

Group, Inc., a Cleveland-based industry

market research fi rm.

According to the study, engine oils

constitute the largest share of lubricant

consumption by product type. Although

rapidly growing motor vehicle parks will

support gains, engine oils will be subject to

downward pressure from lengthening drain

intervals, and as a result will grow in line

with the average pace. Hydraulic fl uids and

process oils will see the fastest gains, due to

the wide range of applications these products

are used in.

Motor vehicle aftermarket demand

accounts for the largest share of lubricant

consumption globally. Demand for motor

vehicle lubricants will increase quickly in

many developing countries due to rapid

growth in the number of cars and trucks in

use. However, advances in lubricant quality

will allow for longer drain intervals, restrain-

ing stronger growth in all regions.

Demand for lubricants used in the manu-

facturing market will see healthy growth,

driven by rising manufacturing output espe-

cially in developing countries. Asia, Eastern

Europe, South America, the Middle East, and

Africa will benefi t from the continued shift

of global manufacturing activity to these

regions. Gains in other markets, including

agriculture, construction, and non-motor

vehicle transportation, will in the aggregate

DEMAND

World demand for lubricants to hit 43.9m metric tons in 2017

F E A T U R EG L O B A L M A R K E T

outpace those in both the motor vehicle

and manufacturing markets through 2017.

Healthy economic growth, investment in

infrastructure and other construction, and

the increasing mechanization of the econo-

mies in developing countries will result in

strong performance in these markets. .

0

10000

20000

30000

40000

50000Central & South America

Africa/Mideast

Eastern Europe

Western Europe

North America

Asia/Pacific

WORLD LUBRICANT DEMAND(thousand metric tons) % Annual GrowthItem 2007 2012 2017 2007-2012 2012-2017 Lubricant Demand 37200 39150 43900 1.0 2.3North America 10380 9430 9600 -1.9 0.4Western Europe 5260 4600 4590 -2.6 --Asia/Pacific 12750 15550 19000 4.1 4.1Central & South America 2100 2350 2650 2.3 2.4Eastern Europe 3530 3660 4010 0.7 1.8Africa/Mideast 3180 3560 4050 2.3 2.6 © 2013 by The Freedonia Group, Inc.World Lubricants (published 07/2013, 477 pages) is available for $6300 from The Freedonia Group, Inc., 767 Beta Drive, Cleveland, OH 44143-2326. For further details contact Corinne Gangloff by phone 440.684.9600, fax 440.646.0484 or e-mail [email protected] OEM/Lube

WORLD LUBRICANT DEMAND

2007 2012 2017

24 LUBEZINE MAGAZINE | May-July 2013

The lubricants

b u s i n e s s , a n

essential prod-

uct category in the

petroleum industry

has largely been oper-

ating in a laissez faire

manner over the years.

The Energy Regula-

t o r y C o m m i s s i o n

(ERC) has published

the Proposed Energy

(Lubricants Business Licensing) Regulations

2013, in a bid to streamline this category as well

as rid the market of rogue dealers who are sell-

ing sub-standard products. These regulations

will affect the whole lubricants industry from

new entrants, existing lubricants businesses to

other complimenting sectors like lubricants

transporters and storage facilities.

The regulations require lubricants busi-

nesses - those that are new and those already

operational including importers, distributors,

transporters and packaging, obtain a business

license renewable annually after inspection

of the facilities. The application for renewal of

a license shall be made thirty (30) days before

expiry. The ERC will then be required to make

a decision within 30 days on application.

A person aggrieved by the decision of the

Commission with regards to a licence applica-

tion may appeal to the Tribunal within thirty

(30) days after receiving the written notifi ca-

tion of such action by the ERC.

The draft regulations also empower the

ERC offi cials to make impromptu inspection

visits to facilities used in handling lubricants.

The proposed regulations further prescribe a

penalty of Sh1 million fi ne or a one year jail

term for business owners found contravening

any of the set out rules.

For the new entrants seeking to construct

a lubricants facility (Blending plant/Retail

dispensing Site/ Lubricants bulk storage facil-

ity), the draft regulations postulates that one

will be required to apply to the Commission

for a construction permit, provide Application

forms, copy of approved plans and specifi ca-

tions, EIA license and certifi cate of compliance

with Land use. The new entrant will further

be required to have the brand he or she will be

F E A T U R ET E C H N O L O G Y

require that they comply with the provisions

of the Energy Act of 2006, the Kenya Standards

for Lubricants and all other applicable laws.

The draft Act includes other license evalu-

ation criteria for new lubricants businesses as

follows:

• Application form to be fi lled

• Detailed questionnaire to be fi lled

• Certifi ed copies of:

a) Memo and articles of Association

b) Certifi cate of incorporation

c) PIN

d) VAT

e) Tax Compliance Certifi cate

• Identifi cation documents for directors

• Certifi ed copy of lease agreement

• Work permits

• Letter from KMA confi rming membership

of Oil Spill group

• Certificate of compliance with physical

planning act

• Detailed approved drawings

• Clearance certificate form Chief fire

Offi cer

• DOSHS certifi cate of registration

• Compliance of facility with KEBs

• Brand registered with KEBs

• Brand registered with KIPI

• EIA approval from NEMA. .

STANDARDS

ERC plans to regulate the lubes market

These regulations will affect the whole lubricants industry from new entrants, existing lubricants businesses to other complimenting sectors like lubricants transporters and storage facilities

By Samuel Macharia

dealing with, registered at the Kenya Bureau

of Standard (KEBS) and the Kenya Industrial

Properties Institute (KIPI).

In addition, the importers of lubricants will

also be required to present a written agreement

between the importer and manufacturer brand

owner, sell brand registered in Kenya and they

are prohibited from blending, repackaging or

selling any lubricant brand without written

authority from the brand owners.

With regards to third parties, including any

contracted lubricants road transporters and

service providers to the lubricant facilities like

storage and warehousing, the draft regulations

Road side mechanics perform an oil change in Kenya.

25 May-July 2013 | LUBEZINE MAGAZINE

26 LUBEZINE MAGAZINE | May-July 2013

Who is MOGAS? Please give us a brief history of the company. When was the company founded and for how many years

have you been operating in the East African region? Founded in 1987 Maestro Oil & Gas Solutions

(MOGAS) is an integrated regional down-

stream oil marketing company with business

operations ranging from international oil

trading to marine and inland terminals, retail

networks, and lubrication services.

MOGAS has strongly positioned itself

as the leading brand name for fuels, oil and

lubricants in East & Central Africa with oper-

ations in Uganda, Kenya, Tanzania, Uganda,

Rwanda, Burundi, the Democratic Republic

of Congo and the UAE.

MOGAS core assets include a state of the

art 40,000m3 capacity marine terminal in Dar

es Salaam,Ultra modern inland terminals in

Uganda, Kampala with 5,000m3 capacity and

MOGAS Kerosene is available at all MOGAS

retail outlets and provides the lighting and

cooking solution to a large population seg-

ment based in East and Central Africa.

Our specialty line of business includes

technology-led and premium quality MOGAS

oil and lubricants; bituminous products; LPG

and furnace oil. We offer extensive automo-

tive lubricants & industrial fluids and are

the sole distributors of Castrol products in

Uganda, Tanzania, Rwanda and Burundi.

When did you start dealing with MOGAS lubricants and what factors favoured your entry into the lubricants market?

Since the Inception of the company MOGAS

has always had a lubricants line of business.

MOGAS Lubricants fall under the specialty

department of the company and includes

Automotive engine oils, motorcycle engine

oils, transmission oils, hydraulic oils, agri-

cultural oils, marine and outboard oils,

in Lubumbashi, DR Congo with a Capacity of

4,100m3.

What is your product portfolio, both fuels and lubricants products?We provide top range quality refi ned petro-

leum products, which include unleaded

Premium Motor Spirit [Petrol] and diesel

automotive gas oil (AGO) for commercial

transportation and private cars, as well as

grades for thermal power, generating plants

or machinery.

As the continent celebrates 50 years of the African union (formerly OAU) Lubezine

keeps track of indigenous oil companies that have emerged in Africa over the years and brings you their involvement in the lubricants market. Here we feature MOGAS from Uganda and Synergy Lubricants from Kenya. We interviewed MR. SIMON GICHOHI, the group Brand manager at MOGAS.

Focus on Pan African lubes brands

F E A T U R EC O M P A N Y

MOGAS intends to become the leading preferred brand name for fuels, oil & lubricants in our chosen markets and to become a leading integrated enterprise in Africa

Mr. SimonGichohi of

Mogas

27 May-July 2013 | LUBEZINE MAGAZINE

greases, specialties, brake fl uid, cutting oil,

transformer oil, radiator coolant.

Where are the lube products produced and how do you source your raw materi-als?MOGAS Lubricants are blended and packed

in MOGAS Affi liate in Tanzania ie MOGAS

Tanzania Limited. We blend our Lubricants

using virgin base oil mainly sourced from

European countries such Italy and Greece,

while we source our additive from renowned

additive manufacturer Lubrizol based in

South-Africa.

What challenges do you encounter in sourcing the raw materials for your lubricants?The main challenges we face are mainly

logistical issues with regard to sourcing from

Europe and South Africa.

Many African owned oil companies distribute well known international brands as opposed to own labels. What would be the advantages or disad-vantages of owning and marketing a lubricants brand as opposed to dealing with a multinational brand?MOGAS is the sole distributor for Castrol

in Uganda, Tanzania, Rwanda; Burundi &

DR Congo. A major disadvantage when you

market your own brand is that some custom-

ers might feel that an international brand is

superior in performance to a local one. We

market both MOGAS Lubricants brand and

Castrol brand to take care of the different

needs of our customers

What is your regional spread? We operate in Seven Countries namely

Kenya, Uganda, Tanzania ,Burundi, DR

Congo, Rwanda, and United Arab Emirates.

What can you say about your market shares in the countries where you distribute your products?MOGAS commands decent market share in

the markets they operate in. For example

in Tanzania, MOGAS commands 10%, in

Uganda, 10% and in Rwanda, Burundi &

Kenya, below 5%.

What are some of the future plans for MOGASMOGAS intends to become the leading

preferred brand name for fuels, oil & lubri-

cants in our chosen markets and to become

a leading integrated enterprise in Africa,

delivering world-class value added products

and services to a multiple class of customers.

As we invoke our guiding principle which

has always been “Global Standards, local

Solutions”

What is the future of the lubricants industry in the East Africa Region?The future looks bright, and demand for lubri-

cants seems to be on the rise compounded by

the fact that the region has found crude oil…..

this defi nitely sets the pace for exponential

growth.

Our enduring passion for lubricants drives

our desire to meet and exceed the expectation

of our discerning customers so as to always

keep at the forefront in our chosen markets.

We advise our customers on how to give

the best care to their vehicles and equip-

ment to ensure maximum protection and

effi ciency that will yield the highest return

on investment and best value.

Synergy lubricants solutions We interviewed Mr.

Mohamed Baraka who is a founder member of Synergy Lubricants.

Who is Synergy Lubricants? Please give us a brief history of the company. When was the company founded and for how many years have you been operating in the East African region?

28 LUBEZINE MAGAZINE | May-July 2013

Synergy Lubricants Solution Ltd is a

lubricants manufacturing and marketing

company founded by Mr. Dilash Bhayani and

I to provide complete lubricant solutions to

consumers in East Africa. The company was

formed in 2011 and has been in business for

18 months.

Which is your product range and regional spread?We deal with lubricants for all segments

of the market i.e. automotive, agricultural,

construction, steel mills, sugar, and cement

and food industry. Although we have compa-

nies registered in Uganda and Tanzania, we

are marketing in Kenya only for the time

being before venturing into those countries.

What factors motivated you to enter the lubricants market as a private investor? I have been working in the oil industry for 37

years with multinational oil companies and

my desire was to pass some of the knowledge

I had acquired to a younger generation. As a

founder director of Synergy Lubricants, I have

a perfect opportunity to achieve this goal.

Please tell us more about how you source your raw materials for lubricants produc-tion and where you blend your products? We import our base oils from Shell Interna-

tional and is coloaded on the same vessel with

other lubricant manufactures in Kenya. Our

additives are sourced from major American

additive manufacturers that have plants in

Europe. We blend our products locally in an

ISO 9000 certifi ed plant. The other special-

ties such as engine coolants, brakefluid,

food grade greases, transformer oils e.t.c are

imported direct from reputable manufactur-

ers in Europe and Asia.

Many African owned oil companies distribute well known international brands as opposed to own-labels. What would be the advantages or disad-vantages of owning and marketing a lubricants brand as opposed to dealing with a multinational brand? Multinationals brands are well known and

therefore easier to market. However they

tend to be more expensive since they are

imported as fi nished products as most multi-

nationals do not allow local blending of their

products by their distributors. An own label

local brand will take time to be accepted in

the market. Consistent quality is a must if one

has to succeed.

At Synergy Lubricants, we only use

approved formulations. Initially the market

will treat your products with suspicion but we

have overcome this as many of our customers

have remained loyal to us due to our commit-

ment to quality. Remember I have worked on

formulation for Caltex for over 20 years so we

execute to same level as multinationals.

What can you say about your market shares in the countries where you distribute your products?

We have a market share of less than 3% in

Kenya. With the strategies that we are putting

in place, this is bound to grow further in the

coming years.

How do you compare the three East African markets? All the East African markets are the same;

many multinationals have moved out and the

industry has been taken over by both indig-

enous oil companies and other traders. Some

of the challenges facing the market include

counterfeits and substandard lubricants.

What has been the effect of East African countries regional integration to lubricants industry? There is still debate as to whether lubricants

qualify to move freely in the East African

region. Kenya allows locally blended lubri-

cants from the East African region including

those from Tanzania to enter into the country

tax free whereas Kenyan produced lubricants

are taxed at 25% in Tanzania.

There is however discussion to harmonize

these taxes.

Just like in any other industry, coun-terfeiting is a headache for many local producers. Tell us if this has affected you and what measures you have taken to fi ght the vice. Counterfeits are a major problem in lubricant

industry especially if your brand commands

a huge market share. We control our supply

chain and make direct deliveries to our

customers thus eliminating the risk of prod-

uct tampering along the way.

In addition our packs have induction and

tab seals which make counterfeiting diffi cult.

What is the future of the lubricants industry in the East Africa Region? The future of lubricants industry in East

Africa is good as the economies are growing.

The market must be regulated to protect the

consumer from substandard counterfeits and

untaxed lubricants.

The East African countries must allow

locally manufactured lubricants to move

freely without further taxes in order that the

industry can grow and create jobs and enable

backward integration for local base oil and

additive manufacturers which will further

increase job opportunities and lower the cost

of lubricants to the consumer. We now have

crude oil and natural gas that can be processed

locally if consumption justifi es it. .

F E A T U R EC O M P A N Y

An own label local brand will take time to be accepted in the market. Consistent quality is a must if one has to succeed

Mr Baraka of Synergy Lubes

29 May-July 2013 | LUBEZINE MAGAZINE

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30 LUBEZINE MAGAZINE | May-July 2013