Odfjell SE Annual Report 2012

tank terminals
Odfjell has ten part-owned tank terminals and two new
projects at strategic locations around the world. The
Company also has a co-operation agreement covering
11 tank terminals in South America, plus one in Canada.
These tank terminals are partly owned by related parties.
In total, our tank terminal network has more than 1,000
employees and 5.3 million cbm of storage space in around
1,400 tanks in 22 ports around the world. Together with
our shipping business, this makes the Company one of
the world’s leaders in both shipping and storage services
for bulk liquids.
We have a strategy of expanding our tank terminal activities
along major shipping lanes and at important locations for
petrochemicals, refined petroleum products, bio-fuels and
vegetable oils. We focus on locations in mature markets,
but also increasingly in emerging ports of importance in
specific rapidly developing nations. In addition to being
profitable investments on a standalone basis, our tank
terminals also offer cargo-consolidation programmes
designed to reduce time and fuel consumption in port
for our ships. Commercially, the combination of shipping
and tank terminals puts Odfjell in a unique position to
offer increased safety, reliability, product stewardship,
efficiency and improved arrival accuracy to its customers.
We are experiencing a steady increase in demand for cargo
consolidation as a result of the industry’s ongoing pursuit
of efficiency improvements along the entire supply chain.
HIGHLIGHTS – BUSINESS DEVELOPMENTS
The transaction for Odfjell and Lindsay Goldberg to acquire
25% interest in the Noord Natie Terminal in Antwerpen,
Belgium, was completed in June 2012. The new joint
venture, named Noord Natie Odfjell Terminals, has signed
a customer contract to extend storage capacity for a further
50,000 cbm.
In 2012, Odfjell commenced construction of the tank terminal
in Charleston, USA. The dredging and the foundation
work has already started. When completed, the terminal,
in which an estimated USD 72 million has been invested,
will consist of nine tanks with a combined storage capacity
of 80,000 cbm.
The construction of our new terminal in the Bohai Bay
region near Tianjin, China, (through our joint venture with
Tianjin Economic-Technological Development Area) started
in 2012. Land preparations are now completed and the jetty
infrastructure is under construction.
In November 2012 the Port of Le Havre selected Odfjell
Terminals to evaluate the development of a new bulk liquids
terminal facility in the industrial zone of Le Havre port,
France. The feasibility study to assess relevant technical,
commercial, QHSE and other requirements has commenced
and is expected to be finalised in Q2 2013.
In December 2012, Odfjell and Lindsay Goldberg LLC
(LG) signed a Letter of Intent to expand the existing joint
venture with Lindsay Goldberg to essentially include
all of Odfjell’s tank terminal business. The transaction
is expected to be closed by the end of Q1 2013 and as
a result, LG will acquire a 49% share. The partnership
will embark on an ambitious and accelerated growth
strategy progressing further the opportunities identified
and matured during recent years.
Odfjell Terminals (Houston), USA, has been granted approval
to develop a new bay with ten stainless steel tanks with
a combined capacity of 30,000 cbm at its existing facility.
During 2012 Odfjell Terminals successfully renewed and
extended the financing arrangement for the North American
terminals business by securing a credit facility of USD 200
million, with an option to finance a further USD 100 million.
In addition, Oiltanking Odfjell Terminals (Singapore) has
secured a credit facility of SGD 180 million, partly to replace
existing credit arrangements on more attractive terms, but
also to accommodate near-term expansion projects for
which customer contracts have been secured.
In line with Odfjell Terminals’ strategy, further terminal
projects across the world are under evaluation.
ODFJELL TERMINALS (ROTTERDAM) B.V.
THE NETHERLANDS (OTR)
Located at the heart of the Rotterdam harbour, the most
important chemical distribution centre in Europe, OTR
has a total storage capacity of about 1,635,00 cbm in 281
storage tanks. OTR is one of the largest facilities of its kind
in the world. The tank terminal stores both chemicals and
mineral oil products.
In addition to the storage business, the Rotterdam tank
terminal also renders toll distillation services through
its fully integrated business unit Odfjell Petrochemical
Industrial Distillation (PID). PID retains a large market
share of the independent product distillation market in
North West Europe and operates four distillation columns
with a combined total annual distillation capacity of 700,000
tonnes, depending on product streams. PID distils both
(petro) chemical and mineral oils.
The Odfjell Terminals Maritiem BV (OTM) site is located
almost directly opposite OTR on the south bank of
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odfjell annual report 2012