Mero CR is a Czech, crude oil transport company that makes use of quality, environment and safety management systems to achieve its defined goals and to gain a competitive advantage in the market. The Czech State's oil reserves are stored outside Prague, at the Mero Central Tank Oil Facility at Nelahozeves. The reservoirs consist of fourteen tanks, operated by Mero Czech Republic AS, the state owned oil company.
Besides this strategically important task, Mero also runs the country's oil pipelines, supplying the petrochemical industry with 90 percent of its oil consumption. Seven pumping stations and about 400 km of pipelines stretching through the Czech Republic's landscape are operated from Mero's high-technology central at Nelahozeves.
High risk activity
The Nelahozeves industrial area accommodates the most inflammable and high-risk installations in the Czech Republic. Situated behind roadblocks, barbed wire and security guards, the facility represents a strong contrast to the Czech capital and its cultural atmosphere, only 50 km away. Mero tank farm's closest neighbour is Kaucuk Kralupy, part of Unipetrol, the state-owned petrochemical holding company.
In 2001, Czech authorities decided to enlarge the Mero tank farm in Nelahozeves with the addition of four more tanks. The expansion programme is close to completion, with three tanks ready to be commissioned. The fourth tank, with a capacity of 125,000 m3, is ready for hydrostatic tests. All welded joints were inspected by DNV.
Running Mero's business involves huge risks relating to fire in particular and environmental and safety-issues in general. Mero has defined fire, oil spillage from pipelines and financial risk as the most significant risk factors.
Integrated management systems
Managing risk is vital to Mero in its efforts to become one of the best oil transport companies in the world. In order to handle its complex risk reality, the company has one dedicated person responsible for each type of risk in business operations.
In addition, Mero has invested a lot of money in the Czech Republic's Integrated Emergency System specifically to manage fire risk. In a swap agreement between Unipetrol and Mero, a fire brigade, two pipeline monitors and water cannons are now available for use by both companies.
Mero is certified by DNV in accordance with the ISO 9001 quality management system standard, ISO 14001 environmental management system standard and OHSAS 18001 occupational health and safety management systems standard. The management systems work as one integrated unity.
"DNV's integrated management system services are of great value," says Milan Bednarik, Mero's representative for the integrated system of management. "The range of services DNV can provide is important to us," he says.
The risks facing Mero are cross-linked. Quality affects safety, in the same way as fire will affect the environment and the customer. Therefore, handling the three management system certifications as a whole and not individually has been essential to Mero in its effort to manage its risk scenario.
"Price and quality were of vital importance when we chose DNV as our certification body," says Vaclav Franc, Mero's chief executive officer. "We are a demanding customer."
Risk Based Assessment
Recently, Mero decided to implement a Risk Based Assessment programme which can help measure a company's management system against its specific business goals and risks. Risk Based Assessment (RBA) is a new assessment system used to plan, execute and report from an audit.
While measuring compliance against external standards, RBA analyses to what extent a particular businesses management system is tailored to the company's specified needs and business environment.
Mero has high expectations for its RBA programme. Indeed, the company has already put a great deal of effort into this process, and many believe Mero's programme can benefit other companies which already possess experience with management systems.
"Since the foundation of Mero ten years ago, the company has invested more than USD 500 million in safety, technology and modernisation," says Vaclav Franc.
It was governmental requirements related to the handling of risk which led to the partnership between Mero and DNV in 2000. While the company had a risk management system in place as early as 1996, the issue became a top priority in 2000.