PROJECT

Projects

Environmental & Social Review Summary

Project Number

10081

Company Name

San Antonio Terminal Internacional S.A.

Date ESRS Disclosed

Feb 5, 2010

Country

Chile

Region

Latin America and the Caribbean

Last Updated Date

Jan 2, 2017

Environmental Category

B - Limited

Status

Completed

Previous Events

Approved : May 12, 2000
Signed : Nov 15, 2000
Invested : Dec 21, 2000

Sector

Port and Harbor Operations

Industry

Infrastructure

Department

Regional Industry INF LAC & EUR

Project Description

- 2 -

Environmental Review Summary (ERS)


Project Name Chile - San Antonio International Terminal (STI)

Region Latin America and the Caribbean

Sector Transport Services

Project No. 010081


1. This project involves the operation, improvement, and expansion of the Molo Sur Terminal, a container and general cargo (i.e., fruits and produce, automobiles, etc.) terminal located in the Port of San Antonio about 100 km west of Santiago. It is being developed under a 20-year concession, and the planned container handling capacity of the Terminal is about 600,000 TEU per year. Specific improvements and expansions planned include:

· Lengthening of an existing berth;
· Development of a container yard;
· Acquisition of additional container handling equipment;
· refurbishment of existing buildings; and
· installation of computer and communication systems.

Under the concession, STI is responsible for maintenance and repair of all civil works and installations, is required to operate the Terminal in a manner so as to avoid or minimize any environmental hazard, and must take necessary steps to prevent or mitigate any environmental damage. STI must coordinate its environmental, health and safety activities with those of the Port Authority of San Antonio (EPSA), who acts as overall port administrator.

It is important to note two areas within the Terminal specializing in separate dry and liquid bulk activities, which are not part of the STI concession. Disputada, a company responsible for the storage and transfer of solid copper concentrates, operates mechanized equipment and a storage warehouse, and will cease operations in January 2001. Terquim is a company that stores and transfers liquid chemicals, including bulk sulfuric acid. It’s facilities include an above ground storage tank farm and an associated transfer pipeline connecting to one of the Terminal berth areas. Terquim has two different concessions. One concession is for various chemicals and it will terminate in 2001. The concession for sulfuric acid will terminate in 2008. It is likely that both concessions will be renewed.

Electricity is supplied through substation connecting to the existing power grid. The Terminal employs both regular staff and stevedores. A total of about 350 people are expected to be employed by 2001.

2. This is a category B project, according to IFC’s environmental review procedure because a limited number of specific environmental impacts may result which can be avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria. The review of this project consisted of appraising technical and environmental information submitted by the project sponsor and a site visit by IFC’s technical and environmental department staff. The following potential environmental, safety and health impacts of the project were analyzed:

· Construction and maintenance dredging and dredge spoil disposal;
· Effluent treatment;
· Stormwater management;
· Oil/hazardous materials storage and handling;
· Handling and storage of dangerous cargoes;
· Solid and hazardous waste disposal;
· Emergency planning and response;
· Employee health, safety, and training programs; and
· EHS organization and management.

The Company has presented plans to address these impacts to ensure that the proposed project will, upon implementation of the specific measures listed in the attached Environmental Action Plan, comply with applicable Chilean laws and regulations and World Bank/IFC requirements. The information about how these potential impacts will be addressed by STI is summarized in the paragraphs that follow.

3. Dredging. Dredging of sediments (as much as 100,000 cu. m.) will likely be required for the berth extension, as well as periodically along each of the berths to maintain adequate water depths. Prior to dredging, STI will conduct field investigations to develop a dredging program that minimizes environmental impacts. Selection of a marine disposal site and disposal activities will be coordinated with EPSA, and appropriate approvals sought from the Chilean maritime authority DIRECTEMAR. Physical and chemical analyses of the sediments will be performed prior to disturbance to ensure that any toxic contaminants are below concentrations of concern to fish and shellfish that might be exposed during dredging and disposal activities.

4. Effluent Treatment. Sanitary wastewaters currently generated at the Terminal are discharged to a septic tank system. It is not clear whether this has appropriate authorization. STI intends to construct a new effluent treatment plant to treat sanitary wastewaters and other liquid effluents (i.e., equipment washwaters, contaminated stormwaters, etc.) generated at the Terminal to ensure compliance with Chilean and IFC requirements. STI’s new plant will treat Terminal effluents to secondary levels prior to discharge to the sea, or to the existing public sewerage system. Appropriate authorizations and permits to operate will be sought from the environmental and health authorities.

5. Stormwater Management. STI’s plans to expand the Terminal infrastructure include the implementation of improvements to the stormwater drainage network throughout the yard areas. Sediment collected in the drainage system will be periodically removed and appropriately disposed. Appropriate authorizations will be sought from the authorities.

6. Oil/Hazardous Materials Storage and Handling. Hazardous materials are only an incidental part of the Terminal’s operations –small amounts of paints, solvents and petroleum lubricants are used for maintenance and repair activities; and batteries are used to operate certain equipment (forklifts, etc.). In the future, diesel oil may be stored on-site and used as fuel for standby power generation. Accordingly, STI has (or will) established designated, dedicated storage areas with adequate containment and spill control features for all of these materials. Paints, solvents, batteries, and lubricants are stored in designated areas. If added, diesel oil will be stored within secondary containment structures.

7. Hazardous Cargo Management. Some of the containerized cargo handled at the Terminal (less than 1% of the total throughput) is considered to be hazardous under the International Maritime Code (IMC). This material includes flammable gases, poisons, flammable liquids, corrosives, reactive and spontaneously combustible substances, oxidizing substances, etc. Containerized hazardous cargo will be stored by material class in segregated areas within the container storage yard with good access to containment resources and emergency response equipment; no radioactive materials or explosives are handled. The majority of containers with dangerous cargoes are handled as full containers, and the inventory is monitored continuously.

8. Solid and Liquid Waste Management. Wastes managed at the Terminal consist primarily of domestic solid waste, spill clean-up residues, and construction debris. Domestic solid waste is accumulated in containers, collected by an authorized, reputable contractor (Full Services, S.A.) and disposed at licensed, local landfills. Construction debris will be sold to third parties for reuse/recycling. Currently, the Container Company manages hazardous spill residues originating from containers in question. Going forward, STI intends to develop an improved hazardous waste management program at the Terminal, which will involve designation of a waste accumulation area(s), and development of related waste handling procedures.

9. Emergency Planning and Response. EPSA is responsible for coordinating the planning and response to accidents with hazardous goods and other emergencies at the Port, and has put in place a Port-wide emergency action plan. As such, EPSA is responsible for responding to general shipboard emergency response needs and related marine spill response activities. With regard to Terminal operations, STI has established procedures, trained personnel, and equipment in place for responding to emergencies, including fire, chemical spills and mishaps, accidental release of petroleum products, and medical emergencies. STI recently developed a Terminal Emergency Action Plan, which provides:

· Procedures for Plan review, periodic training of employees, schedules for drills, and a EAP Planning Committee function;
· Spill recordkeeping requirements;
· Procedures for conducting annual “area threat analyses”;
· Description of the Emergency Response Organization;
· Description of Hazardous Material Cargo Segregation Program;
· Documentation and reporting requirements (including notification requirements and contacts, incident reports and post incident reviews);
· Emergency equipment inventory;
· Resource and agency directory ; and
· Internal and external communications plan.

STI will coordinate with EPSA to ensure that the respective Terminal and Port plans are consistent and that the Terminal plan meet EPSA requirements. The Company will also appropriately coordinate with Terquim’s emergency planning and response activities in regards to sulfuric acid spill response procedures, and the effects on Terminal operations. In addition, STI will coordinate with the Chilean Navy personnel responsible for the management of marine oil and chemical spills.

10. Employee Health and Safety, and Training. STI is in the process of implementing programs to ensure the health and safety of all employees. Pre-employment and periodic medical evaluations will be conducted for all employees. Personnel will be issued appropriate Personal Protective Equipment (PPE), briefed on its mandatory use, and regularly monitored to ensure it is used properly. Safety rules and guidelines have been established and will be regularly communicated to employees through internal circulars and training programs. All new employees will receive a basic safety and security presentation and regular training will be conducted for first aid and CPR, fire fighting, and emergency response. An on-site team of designated personnel will be trained in handling oil and chemical spill equipment for spills which occur in the Terminal yard areas. A Safety Committee will be established, and will meet monthly to discuss employee safety issues.

11. EHS Organization and Management. STI has a written corporate environmental, health and safety (EHS) policy. Its objectives are to:
· comply with all applicable legal requirements through application of Best Management Practices;
· develop and implement measures aimed at prevention of pollution by reducing the generation of waste, recycling waste that is generated, and properly disposing waste that cannot be recycled; and
· integrate EHS considerations into business planning and decision making.
In this regard, the Company intends to appoint an individual to have overall responsibility for EHS performance at the Terminal. This EHS Manager will have responsibility for coordination with EPSA and appropriate regulatory authorities on all related matters, including preparation and submission of environmental assessments and reports as required by Chilean law, and ensuring adequate management and implementation of EHS recordkeeping and reporting (including incident reports), monitoring, and training activities.

12. Accordingly, IFC concludes that the proposed project will meet the applicable World Bank/IFC environmental and social policies and the environmental, health and safety guidelines and Chilean requirements upon successful implementation of the measures listed in the attached Environmental Action Plan.

13. IFC will evaluate the project''s compliance with the applicable environmental and social requirements during the lifetime of the project by:
· Reviewing the annual monitoring reports (AMRs) prepared for the project by STI covering: (i) the status of implementation of any measures contained in the Environmental Action Plan; and (ii) ongoing performance of project-specific environmental, health and safety activities as reflected in the results of periodic and quantitative sampling and measuring programs; and
· Conducting periodic site supervision visits.


Environmental and Social Mitigation Measures

Broad Community Support