The annual conference of the European Petrochemical Association (EPA) was held in Berlin. The global trade flow of chemicals is currently undergoing constant change, says the CEO of the Swiss chemical logistics group Northall Flag. Demand for new chemical logistics routes and infrastructure will emerge.
Bertschi noted, “The reality is that emerging countries in different regions are on the rise. Some of these countries although access to external investment. But do not yet have adequate chemical infrastructure. Therefore, it is expected in the chemical logistics and supply chain infrastructure, some emerging countries will get more investment. For example, some chemical producers from China are establishing factories and operations in Hungary and Turkey. Morocco, India and Vietnam are also seeing a series of cross-border investments. They are all changing the current pattern of chemical trade globally.”
In addition, Bertschi pointed out that based on the raw material advantages of the United States and the increase in new facilities, Europe’s imports of chemicals from the United States have increased significantly, which will drive investment in new facilities. This has been going on for three to four years. And will develop further. He expects more production facility closure announcements in Europe. The required chemicals are imported from the US, the Middle East and China. Therefore, large investments in logistics equipment will be needed.
In addition, chemical recycling will drive new logistics developments. The chemical recycling industry is growing. In Europe alone there are 83 projects recorded in the ICIS database.
According to Bertschi, this emerging part of the chemical industry will create some entirely new logistics requirements and trade flows.
Bertschi points out that chemical production currently only requires oil and gas to be transported primarily through pipelines to refineries and crackers to make products such as chemicals and polymers. It is then distributed to downstream customers. The circular economy creates new material flows that will require more logistical support. Northall Flag has already begun installing storage centers near crackers, as well as heating and testing facilities for thermally cracked oil.