Markets EDITORIAL CONTENTS

THE WORLD OF OILTANKING VOL. 26/3 DECEMBER 2014 connections

Contents

ASIA PACIFIC 04 Oiltanking makes its mark on Singapore’s storage market

EUROPE 06 Elevated spirits at Oiltanking Malta 08 Oiltanking Bulgaria on its growth course Market 10 Demand for direct transshipment 04 metamorphosis 12 Danish diversification strategy STORAGE MARKET 21 Direct gasoline transshipment on the cards in Hanau “A century ago, petroleum − what we call oil – was just presence in the United States through the terminals in an obscure commodity; today it is almost as vital to Texas City, Port Neches and Joliet. Even after this human existence as water.”* Indeed, some of today’s strategic sale, Oiltanking remains the world’s second INDIA 16 IOT strengthens its ties in the Middle East most traded and influential commodities are connected largest independent storage company. We will continue with the energy sector. And never has the energy to grow our terminal network and follow our strategy as market come up against so many uncertainties and a leading independent storage partner, providing LATIN AMERICA 22 More copper – LQS expands at Matarani risks as in recent years. While refineries in Europe face customers with flexible, safe and efficient services. Successful renewal of ongoing rationalization, the demand for oil keeps on We would like to thank all our Oiltanking colleagues in 30 operation contracts rising on the emerging markets in non-OECD countries. the U.S. for their commitment and great efforts over Moreover, the shale oil and gas boom in the U.S. and the years. And in particular, we wish those who will the increase in output is having an impact on the energy continue working with Enterprise all the best in their 14 We can, we care … in market research 22 markets and product flows. Consequently, the imbalance personal and professional futures that lie ahead. People EXPANSION between supply and demand on the global oil and As of now — fresh from the market — you will find out & Places 18 Cultural Experiences | Variety is energy market is growing. more about Oiltanking’s current ventures and quest for the spice of life Just as the market has changed, so has Oiltanking. markets worldwide in this just released “market” issue. Bargain your way around the world Over the last 42 years, Oiltanking has developed from 28 an independent oil storage provider specializing in Happy reading 34 In a nutshell terminals in Europe to an international storage logistics from the Oiltanking Interim Management provider - also for chemicals and gases. This was achieved through constant analyzing of markets and Leisure & 17 Lexicon | Volatility business opportunities, and dedicated employees. The recent sale of our interest in Oiltanking Partners with its ENTERTAINMENT 24 Shop till you drop … wholly owned subsidiaries, Oiltanking Houston and 32 Number | 2 Oiltanking Beaumont, is also based on these principles. Christian Flach Julio Tellechea While we never had the intention to sell these assets, Chief Executive Officer Executive Board Member 35 Reader's Corner we did accept the Enterprise offer because we were Last but not least | Fancy floors 24 fully convinced that this is an extraordinary opportunity 36 * The Honourable James Buchan (born on June 11, 1954) with flavor for the whole group. We are maintaining a strong is a Scottish novelist and journalist. SHOPPING

IMPRINT connections Vol. 26/3/2014 Published by Oiltanking GmbH, Corporate Center, Admiralitaetstrasse 55, 20459 Hamburg, Germany, www.oiltanking.com, Telephone +49-40-37099-485, Fax +49-40-37099-499 Cover: “The Horn of Plenty” by Arno Coenen that adorns the ceiling of the recently E-Mail [email protected] Coordinator Gabi Wuestenberg, Manager Communications Editor Renate Eijkholt Design raz design, Hamburg Print BEISNER DRUCK GMBH & Co. KG, Hamburg Published Three times a year opened “Markthal” (Market Hall) in Rotterdam, the Netherlands, whets visitors’ Copy Deadline vol 27/1 week 5, 2015 appetites. Read more on the back cover. © Markthal Rotterdam, Provast Print compensated Id-No. 1442370 www.bvdm-online.de 2 CONNECTIONS CONNECTIONS 3 Asia Pacific Asia Pacific

Oiltanking makes its mark on Singapore’s storage In focus Oiltanking’s terminals play a vital role as a storage provider on the market Greater Singapore market.

Four Oiltanking pillars in Singapore Oiltanking Singapore (1.3 million cbm) enjoys a strong position as a gasoline-blending terminal. It is integrated in two refineries (Shell Bukom and SRC), the petrochemical complex (PCS) and Oiltanking Odfjell Singapore (for gasoline components). Additionally, it holds a key position on Singapore’s jet fuel, fuel oil and gasoil bunker markets. Oiltanking Odfjell Terminal Singapore (388,000 cbm) is a world- scale chemical terminal serving multiple chemical plants on Jurong Island. It also supplies certified jet fuel to Changi Airport and is the only Along with Rotterdam, the Netherlands, and Fujairah, United Arab Emirates, Singapore independent terminal in Singapore to provide these services. is currently one of the top three bunkering hubs in the world. Since Oiltanking Due to the shortage of land, Singapore Oiltanking Helios Singapore (503,000 cbm) is a world-class terminal commenced its activities in Asia with the construction of the first tank terminal in stopped approving new storage projects optimally designed to store fuel oil and supply Singapore’s bunker market. that purely serve trade. It aims to The terminal can handle a full range of fuel oil grades and blends using air Singapore in 1989, the market and the company’s facilities there have developed develop Jurong Island further into an sparging, which has proven to be a highly effective technique. tremendously. integrated petrochemical hub, thereby Oiltanking Karimun (760,000 cbm) is Oiltanking’s latest addition to attracting businesses that generate a the Straits Hub scheduled for completion in the third quarter of 2015. Jurong Island is a 32 km2 artificial island formed by the There are several reasons why Singapore became Asia’s higher value per square meter. In The terminal boasts cutting-edge construction and design to provide its amalgamation of seven offshore islands located southwest undisputed oil hub. Firstly, it is strategically located order to still participate in Singapore’s customers with maximum flexibility and vessel turnaround times. It will of Singapore. It is also the heart of the city-state’s between the Indian and Pacific Ocean, giving companies trading activities, storage terminals cater for fuel oil and clean petroleum products and have four deep-water petrochemical industry and home to more than 95 leading easy access to large regional markets. Secondly, deep- have sprouted up and are still doing so berths at its disposal, including VLCC capability. Ships can be loaded with oil, gas, petrochemical, and specialty chemical companies water berths at the various independent terminals can in neighboring Johor in Malaysia and up to 6,000 cbm per hour. from all over the world. accommodate large oil tankers, while the the Riau Islands in Indonesia. This southern edge of Jurong Island boasts area is now better known as the Straits 3 % Back in 1989, Oiltanking started the construction 2 % very large crude carrier anchorage Hub. of its first terminal in Singapore with an initial 7 % 4 % (VLCC) and facilities for liquefied the development of shale resources in the U.S., changes in capacity of 260,000 cbm. Ever since, the 18 % natural gas (LNG). Most importantly, Singapore’s European counterpart is Rotterdam in the global flows are flagged up high on the agenda. The terminal has continued to grow based on Singapore has become a recognized Netherlands — the largest port and integrated production growing demand for oil in Asia is likely to continue thereby market needs. Until the beginning of Platts pricing hub, advancing trade and center on the continent. Due to its strategic location on the supporting demand for storage capacity in the Straits Hub 2006, the storage market in Singapore Market share market liquidity. Today, Singapore’s Rhine-Meuse-Scheldt delta in the North Sea and its around Singapore. Oiltanking currently operates three was fairly modest in size with a relatively 2015 (cbm) third-party storage capacity exceeds blending capacity and specialized storage infrastructure terminals on Jurong Island and is building a world-class small number of competitors. But between 10.5 million cbm. and capabilities, it holds a strong position in the oil and facility in Karimun, Indonesia, 25 nautical miles southwest 2006 and 2009, storage development chemical storage market, offering more than 30 million of Jurong Island. The four facilities in the Straits Hub will really took off and the same held true for Market share Oiltanking is well cbm of tank storage facilities for all types of liquid bulk. complement each other with their own specific infrastructure Oiltanking thanks to the construction of 66 % positioned in the Straits Hub in and capabilities, which will enable Oiltanking to position additional capacity on its existing and at and around Singapore. In general, the global energy market has become itself soundly in today’s competitive market to win the new sites on Jurong Island over the years increasingly diverse and complex. With new world-scale additional anticipated trade flows and provide a Oiltanking Singapore Oiltanking Karimun and the acquisition of the Helios terminal Oiltanking Helios Singapore Singapore refineries springing up in the Middle East, India and China, comprehensive value proposition to meet the widest back in 2012. Oiltanking Odfjell Singapore Straits old refineries shutting down in Australia and Japan, and possible range of market needs and functionalities.

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Before Tank no. 131 had a height of Working creatively with the island’s limited 20.5 m and a capacity of 10,800 cbm. land availability, in 2014 Oiltanking Malta increased its terminal’s capacity by elevating two tanks vertically instead of horizontally.

After The modified tank no. 131 with the increased 4.5 m has a total height of 25 m and a tank capacity of 13,300 cbm. spirits at geotechnical engineering company was commissioned to Elevation of the tanks tops up Oiltanking Malta’s commercial Oiltanking Malta inspect and verify existing tank foundations, which included capacity. Heightened capacity means more flexibility for considerations to change bottom profiles to improve customers, as parcel size can be enlarged. In the near operations. The original tank designer was responsible for future, Oiltanking Malta will focus on operational flexibility preparing a preliminary tank design that featured two and de-bottlenecking existing infrastructure, rather than more shell courses, and for establishing new foundation on increasing terminal storage capacity. Things are on the loads. Oiltanking Malta’s operations’ teams were asked to rise in the Mediterranean: the terminal has consecutively ensure the cleanliness of the two tanks once their previously achieved exceedingly good results in the last years; the stored products had been safely re-directed to other elevated tank construction is nearly accomplished; the When housing space is scarce, the Oiltanking tanks. prospect of constant high demand for tank storage is housing construction sector tends to bright, and Oiltanking Malta’s competitive spirit is alive skyrocket vertically by building multi-story Once the tanks were clean and gas-free, lifting lugs were and kicking! buildings. Space on Malta is in short welded onto the tank shell and jacks were put into position. supply. The Mediterranean island’s 316 After cutting off the shell just above the bottom weld, the km2 is slightly less than twice the size of tank was carefully jacked up until there was enough space Work in progress Washington, D.C., or almost the size of to insert a further shell course. Once the additional course Two additional shell courses have Rotterdam. Yet, since commissioning its was welded into position, the lugs were re-fitted to the been added to tank no. 131. first tank in 1992, Oiltanking Malta has lower position and jacking resumed to make space for expanded into a major oil storage provider. another, the second, shell course that was then welded to In order to be able to cater to rising the new bottom plates. TO-DO LIST The original demand for its storage facilities and shell nozzle plates at counter the island’s restricted surface The elevation of the first tank was finalized in June 2014. tank no. 131 have been replaced. area, Oiltanking Malta opted for the obvious: elevation of the tanks. The second tank elevation is due to be completed by end November (as of editorial deadline). “During the average The scheduled replacement of two tank bottoms in 2014 was what four months’ construction time, the most time-consuming presented the opportunity to bring creativity to fruition. Already during job was the re-profiling of the new bottom’s foundation construction of the last new tank in 2012 the idea of elevated tanks from cone up to cone down. The most challenging had been introduced. However, before the jacking of the tanks could undertaking of all was the coordinated lifting/jacking up of begin, preparatory work was involved. The Malta Environmental the tank shell to avoid tilting and deformation”, summarizes Planning Authority (MEPA) had to grant permission for construction. A Soenke Stein, CEO Oiltanking Malta.

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Inner strength The new tank foundation is made stronger with reinforcing steel. Outer aspect Tank and cup construction designed for an additional 6,000 cbm storage capacity.

Historical and Forecase Values (1970-2035): Crude Oil Price Volatility 2013 and20 was finalized in April 2014. It required careful 2015, taking the total storage capacity of the terminal up planning18 and realization as it had to be performed without to 24,000 cbm. interrupting16 ongoing operations. To this end, new operational14 instructions were drawn up and external HSSE Oiltanking Bulgaria already plays a vital role in the country’s support12 was provided. copper processing industry. With this expansion project, it 10 continues to successfully assist the local production plants The signing,8 at the end of January 2014, of a 10-year in their future endeavors to go on international markets. storage6 contract with a local zinc and lead plant to meet As there is still land available for expansion, Oiltanking is the needs4 of its sulfuric acid production resulted in further poised to offer competitive solutions to further develop the Oiltanking Bulgaria on its growthDollar Change per Barrel 2at the terminal. The initial expectation to process (petro)chemical activities in the port of Varna West. 100,0000 mt of extra throughput per year may just well hit the 200,000 mt mark. Hence, construction work on a new 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 2020 2025 2030 2035 growth course 6,000 cbm tank has been underway since June 2014. It is Historical Assumed scheduled for completion by the end of the first quarter of Since the Oiltanking terminal in Bulgaria started operations in 2001, the annual throughput has increased steadily. Oiltanking has invested in additional Upward trend Oiltanking Bulgaria’s infrastructure to advance its throughput volumes. throughput development 2001-2013. Throughput development 2001-2013 1,400,000

With its current total capacity of 18,000 cbm, the initial volume, which is almost 1.2 million tons. This 1,200,000 Oiltanking terminal at the port of Varna West may be means that the facility is now running at full capacity

one of the smallest amongst the 72 Oiltanking terminals and is stretching its limits in terms of operational 1,000,000 worldwide but it has chalked up a powerful performance capabilities. Given the market developments, a further over the years. When it began operations back in rise in throughput is expected. Oiltanking Bulgaria, 800,000 September 2001 to transfer sulfuric acid from a smelter therefore, decided to invest in more infrastructure to 600,000 production plant in Pirdop (400 km from Varna), it ensure safe and sustainable operations. To meet the

consisted of three 6,000 cbm tanks for product storage. new operational requirements, it constructed two new 400,000 It was originally designed to process 550,000 mt of railcar discharge positions in addition to the four sulfuric acid a year. Ever since, the throughput volume existing ones, thereby reducing the unloading time by 200,000 has gone up continuously. 50 percent. As a result, third parties who are involved Ensuring efficiency The new 0 in the sulfuric acid business have more services than railcar discharge positions reduce the

Last year the throughput reached more than twice the before. The construction work started in September 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 unloading time by 50 percent.

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Well prepared The direct transshipment of gasoline is already possible at the Oiltanking tank terminal in Karlsruhe with a total capacity of 261,000 cbm.

Demand for direct transshipment

Changed constellations in the German mineral oil market have triggered an increase in demand for direct transshipment. What is the current situation and how is Oiltanking Deutschland The only possibility responding? for these inland refineries is to transport their According to the Association of the German product to a tank Petroleum Industry forecast, a 13.4 percent decline terminal on the Rhine by in mineral oil consumption in Germany is expected by railcar and load it onto a barge 2025 compared to 2010. If one considers the individual bound for the ARA region. However, there products, this decrease especially affects gasoline are only a handful of tank terminals in (-36.7 percent), heating oil (-35.2 percent) and fuel oil Germany that are able to perform this kind (-20.8 percent). On the other hand, there have not of transshipment, including Oiltanking been any known refinery closures. In fact, new players Karlsruhe, Oiltanking Bendorf and soon have even entered the market through the acquisition Oiltanking Hanau (see also page 21). While of the Ingolstadt refinery by Gunvor or Vitol’s share in little importance was attached to terminals the Bayernoil refinery, for instance. with railcar connection at locations that were also supplied by barges in the industry in the that no separate tank space is required for the transshipment the product loaded onto a barge from there while the More of an import-driven mineral oil market in the past, past, the fact that Oiltanking, unlike its competitors, process. However, a good handling is necessary to hold the second block train is unloaded directly onto the barge. This Germany is thus particularly becoming an exporter of maintained and sometimes even expanded its ship and the railcar block train ready at the same time; offers the customer more flexibility when it comes to finished products in the gasoline and fuel oil sector. As terminals with railcar connection is now set to pay off. otherwise, the tank terminal is blocked by transport, handling direct transshipments. some German and also Eastern European refineries do incurring high extra costs for demurrages and railcar not have their own connections to the waterway waiting times. The demand for direct transshipment is on the increase. network, relying solely on railcar connection instead, Railcar connection (back) in fashion And thanks to its prime location and flexible infrastructure, they have to find different alternatives to transport the The second option for carrying out direct transshipments is Oiltanking Deutschland is well poised to meet this demand product, which cannot be marketed in the area where Direct transshipments can be conducted in two ways. to include a tank in the process, which enables either one and is planning to expand further in the short-to-medium the respective refinery is located, to the ARA region The simplest option is to unload one or two railcar block or even both railcar block trains to be unloaded into a tank term. (Amsterdam – Rotterdam – Antwerp) and bring it to the trains directly onto a barge without the product actually before loading the cargo onto a barge. Alternatively, the global market that way. touching a tank. Needless to say, this has the advantage first railcar block train can be unloaded into the tank and

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Oil cargoes in Copenhagen primarily: will be a new service in Danish } import jet fuel for Copenhagen Airport Copenhagen. Moreover, (about 40 percent) OT Shipping Services diversification } import and export bunker gasoil for the will act as Bomin’s local Competent partner Danish market (about 30 percent) coordinator. OT Shipping Services in } import gasoline and diesel for gas stations strategy Copenhagen handles all (about 20 percent) The biggest challenge kinds of port calls and } import chemicals and provide long-term ahead is to convince oil shipping-related storage (about 10 percent). companies to change services. their “business as usual” mindset and use OT Besides handling oil tankers in Copenhagen, Shipping Services as OT Shipping Services offer transit services for their preferred agent. Compared to its vessels passing through Danish waters and competitors, the company really has an consultation for a large Danish shipping advantage because, as a subsidiary of company. Since May 2014, it has been Oiltanking Copenhagen, it has direct contact generating adequate revenues to reach a with the terminal during cargo operations, breakeven point or sometimes even make a which helps to reduce the time of port calls. small profit. As of November 2014, Oiltanking’s Despite its tough start on the market, OT sister company Bomin has been active in the Shipping Services remains confident that it Danish bunker market to supply bunkers in has taken the right course and will stay right and around the waters of Copenhagen. on track. Consequently, this move will create more traffic and port calls because the plan is also to supply bunkers ex-pipe from the berth. This For more information or questions, please contact OT Shipping Services at [email protected] or +45 3264 1251. One and a half years ago, Oiltanking Copenhagen, Denmark, branched out into a new market by establishing OT Shipping Services A/S. It handles all kinds of port SAILS ARE SET calls and shipping-related services for the surrounding ports. The time has come OT Shipping Services entered the market in to see what course this new venture has taken. June 2013 and gained valuable experiences ever since. June 1, 2013 was also a first for Oiltanking as its terminal in Copenhagen commenced a new business venture. months ago the business is by no means a walk in the park OT Shipping Services assists Oiltanking Copenhagen’s and at the moment they see it as a pilot project. The existing customers with a wide variety of services, focusing number of tanker port calls in Copenhagen has declined chiefly on tankers that discharge and load oil cargoes in from an average of 24 calls in 2013 to 17 per month to Copenhagen and the nearby ports. After only 18 months, it date. While there are many contributory factors, some of has gained valuable insights into the developments, the main reasons for this development are the trend of opportunities and limitations on the local market. ever-increasing ship size vessels calling at the ports and the quantity of imported and exported oil products in In the meantime, OT Shipping Services has managed some Copenhagen has generally remained stable. port calls, but is still striving to gain a solid foothold in the market as a port agency. As Hans Chen Braas, Shipping Service Manager at OT Shipping Services, put it some

12 CONNECTIONS CONNECTIONS 13 People & Places People & Places

We can, we care …

customers, brokers, ship owners, and consultants. Reading answer can take anywhere from several days to a couple of is obviously crucial for the job, so subscriptions to various months. … in market industry digital and print publications are essential. Luckily, Arthur and Sean both find Arthur and Sean, however, give CORE QUESTIONS the world of research as interesting new meaning to being well- as it is fascinating. It is a learning research read and informed. In addition process, both agree. Arthur vividly } Is this relevant for Oiltanking? to English, Arthur, who is an } Are existing operations affected? recalls how he became educated on The different departments at Oiltanking all have one thing in common: economics and mathematics an exotic form of fossil energy } Is this an opportunity for they are all instrumental in ensuring that both internal and external major, speaks German and business development? (methane hydrate). Sean is still Russian. And Sean has a double excited about the research work he processes run smoothly to departmental standards. But who provides major in economics and political did to find out the number of the answers to questions about what is happening in the market, for science. The background and chemicals needed for the acquisition example? What information is relevant and what should actually be work experience of the two colleagues provide the perfect of a chemical terminal, for instance. “The research was basis for grasping, understanding and advancing the simply mind-blowing!” shared among Oiltanking colleagues? And, who is the go-to person for development of the business. information on business trends? The answer to all these As much fun as researching is, imagining their ideal life questions is Arthur Schmidt and Sean Fu. The two, on Oiltanking’s research team members each have their own comes close to a guilty pleasure. If not in market research, areas of focus. As a matter of course, however, the analysts Sean pictures a life attuned to rhythm as a musician while behalf of their market research colleagues in constantly share intelligence, consult one another, and Arthur would put his strategic skills to use as Oiltanking’s regional offices, and Hamburg, Germany, update each other on the latest information and the most a risk manager or stock analyst. give an idea of the scope of their responsibilities. groundbreaking industry knowledge. The research team More outdoors oriented, members regularly produce independent reports on their Arthur's daydreams find him specialized concentrations. As well as the regular, independent running up and down the reports, inter-team members operating collaboratively produce sunny beaches of California, Think of how a sponge works when calling to larger, more in-depth reports. At Oiltanking, flexibility reigns on patrol as a lifeguard. mind Oiltanking’s Arthur Schmidt and Sean Fu. Like supreme. sponges, the two saturate themselves with information before quenching the thirst of their team members. The market research team’s “customers” are their colleagues, Arthur and Sean observe, screen, analyze and evaluate who are primarily general and regional managers, business which data might best serve Oiltanking, then brief development managers, and merger and acquisition their colleagues with their findings. analysts. The nature of the oil storage business is that the direct results of research are usually only seen in the long- Arthur joined the Oiltanking team in Hamburg in 2011. term, if they make themselves at all apparent. Arthur Speaking of his experience, he says, “To do the job, clarifies, “For instance, if management makes the decision to you need to have at least an affinity for research and build a new terminal based on the market analysis we “The greatest joy an ability to cope with research routine. Good provide, it will take years before the facility is operational. knowledge of English is an absolute must. An interest So, if we are praised, it is mostly because our “customers” “You have to and satisfaction in energy markets and statistics is more than helpful.” like our quick response-time, or the scope, or quality of our “Moreover, you have to be persistent,” adds Sean, who research reports.” Even if they may have to wait for praise Understand the needs began working at Oiltanking in Singapore two years on occasion, Arthur and Sean cannot wait to jump at the comes in knowing that my ago. “And have lots of patience.” chance to take on a fresh assignment. The frequency of of your colleagues and research has proved useful incoming inquiries for information needed to update and provide them with the kind and helpful to colleagues To get their information and keep abreast of the latest complete country profiles, and regional or other reports of information they find and the company.” trends, Arthur and Sean use all resources at hand. ranges from one per week to several a day. If the data is Sean Fu They monitor the Internet, for instance, and exchange readily available, they can come back with an answer within relevant.” Arthur Schmidt . information with external contacts, among which are minutes. But if intelligence must first be researched, an

picture: © China National Tourist Office

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IOT strengthens its ties in the Middle East A new contract to build storage tanks for Volatility the Sohar Refinery Improvement Project in Oman gives IOT the edge as an EPC contractor in the competitive yet Crude oil was among the first categorized either as energy commodities to be widely historic or as implied opportunity-rich Middle East market. traded. Today, as one of the world’s volatility. While the most traded commodities, the price former model reflects the of oil, like those of other commodities, past price movement of the The Middle East, with its vast crude oil deposits, is an can be volatile. The term “volatility” underlying asset, the latter is a important region for a company like IOT that provides is used in the world of finance to measure of market expectations Engineering, Procurement and Construction (EPC) services refer to the variation in asset or with regard to the asset’s future for the oil and gas sector. IOT’s foray, as a trusted EPC originally constructed and commissioned in 2006 and commodity prices. When market volatility. contractor, into the Middle East began with the successful ORPIC’s recent investment is aimed at intensifying its prices tend to undergo a lot of completion of a tank construction project for Oiltanking production capacity. Once finished, it is anticipated that change within a relatively short In previous decades, the oil market Odfjell in Sohar, Oman. Over the last few years, IOT has SRIP will increase the current output by almost 70 percent. period of time, the market is said to demonstrated periods of high meantime, various factors still continued to strengthen its foothold in the region with a Thanks to IOT Engineering and Construction Services LLC’s have high volatility. volatility, with peaks in the 1970s remain in play that over time can tank construction project in Fujairah, United Arab Emirates. (IOTECS, a subsidiary of IOT) outstanding track record it and early 1980s reflecting oil price continue to drive heavy price swings. Just recently, it won a project to erect storage tanks in the will be heading the storage tank construction. Strict There are different ways to measure shocks. Turmoil in the markets led to Moreover, it must be remembered Sohar Refinery Improvement Project (SRIP), again in adherence to timelines and excellent follow-up data it. A volatility model aims to forecast a dramatic increase in volatility pre- that the supply and demand curve Sohar, Oman. This is the outcome of unflagging efforts and provided by IOT were just some of the key contributing volatility: this is the chief and post the last global financial for oil is considered highly inelastic, excellent teamwork between IOT’s head office, its regional factors in securing the contract. In the space of just three requirement in most financial crisis, for example. Although the at least in the short-term. Neither oil office in the Middle East and its client Petrofac. months (from tender application to award of tender) the applications. The models are markets have calmed slightly in the supply nor demand initially responds team at IOT dealt with around 13 technical clarifications greatly to price changes. As a result, Contract win and seven bid revisions before finally winning the tender in any shock to oil supply or demand, It all started when Petrofac, an international oil and gas June 2014. such as political or military upheaval Historical and Forecase Values (1970-2035): service provider, in a 50/50 joint venture with Daelim, a At a glance Crude Oil Price Volatility (1970–2035) or natural disasters, will lead to Korean engineering and construction company, was The scope Crude Oil Price Volatility significant changes in the price of awarded a contract worth US $ 2.1 billion by Oman Oil IOTECS will act as a sub-contractor for the Petrofac-Daelim 20 oil. Consequently, this establishes Refineries and Petroleum Industries Co. (ORPIC). The joint venture and will be responsible for the EPC of storage 18 market equilibrium again. Yet, a contract includes improvements to the existing facility and tanks. The project scope encompasses 49 tanks and one consistently more volatile market 16 the addition of new refining units. The refinery was sphere. 37 of the total 49 tanks are fixed-roof while the may have been triggered by the remaining 12 are floating-roof tanks. Each of the largest 14 emergence of two new factors, tanks (three in all) measures 54 m diameter by 22.6 m 12 namely financial traders who show height and has a capacity of 51,732 cbm. The project is increased speculative behavior, and 10 scheduled to be completed within 21 months. The the arrival of investors from outside engineering work is up and running and in line with the 8 the oil industry. real-time milestone completion dates created by the client. 6 Despite the tight deadlines, the engineering activities were 4 already in full swing in July and the procurement team were Dollar Change per Barrel ready and waiting to deliver by mid-August. So, it can be 2 safely said that IOTECS has got off to a good start. 0

Ambitious project Once ready 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 2020 2025 2030 2035 49 tanks and one sphere will be Historical Assumed built by IOT's subsidiary LLC. © US Chamber of Commerce, Institute for 21st Century Energy

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Throughput development 2001-2013 1,400,000

1,200,000

1,000,000

800,000

600,000

400,000

200,000

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 CULTURAL EXPERIENCES CULTURAL EXPERIENCES

True blue The Pedra Azul (blue stone), a bare granite mountain “Starter” in the state of Espíritu Santo, takes on a blue If my entire experience with Oiltanking could be equated to a hue in the shadow. multi-course meal, the appetizer was put before me in the city of Bahia Blanca, Argentina where I joined Oiltanking Argentina in 2006 as Project Engineer. Without a doubt, Bahia Blanca was the best place to start my Oiltanking career. The Puerto Rosales terminal there is the largest From Bolivia in Latin America, and every person I met on the team to Argentina did their part to help me learn the ropes and become to Colombia a team player. For instance, instead of just explaining how the job was supposed to be done, my colleagues to Brazil were always ready to lend a helping hand to ensure that I also learned on the job. Foodwise, the delicious “dulce de leche”, a confection made by heating sweetened condensed milk, perfectly describes my welcome in Bahia Blanca: sweet!

During my four years at the terminal, I came to realize that there was something truly special about the place. Needless to say, in addition to working hard, my colleagues always had time to share their friendship and kindness, with a succulent "asado", which is a barbeque technique common to Argentina and an absolute event in the country, or a football game at the terminal every Friday evening; which was another good reason ending the week with a smile. At these events, people talk not only particularly loud but also with a frankness, which after a while, you learn to appreciate and get used to. In Alfredo Lafuente was born in Cochabamba, the end, I know that being part of the team at the Puerto Rosales terminal was one of the most special and rewarding experiences of my Bolivia, where he attended the University of life, delectable in every sense. San Simón. However, it was his professional Portuguese for beginners The career that took him abroad. Since starting Araial da Ajuda “First course” Beach, Bahia, at Oiltanking eight years ago he has One of the entrées to my career might well be “é already moved three times within Latin banquet was served in the delightful minha praia” — city of Cartagena. It is with very which literally America. Here he regales readers with translates as good reason that Cartagena is some of his experiences, occasionally, “it’s my beach”, called the jewel of the Colombian but figuratively from a food perspective. coast. The cultural diversity means, “that’s there is a vibrant amalgam of my cup of tea”. African, Caribbean and Frankly speaking, I love food. So, when I left Bolivia Spanish influence. Our team, eight years ago my thoughts were of course on the people I would miss — and also on the expected cravings for the food I grew up with. I was already craving the food that had been an integral part of all my memories. But joining Oiltanking has meant embarking on a journey of compelling projects, and ever more interesting plates of new and delicious cuisine.

18 CONNECTIONS CONNECTIONS 19 Culture Experiences EUROPE

The Metropolitan Cathedral With its stunning stained glass windows and impressive towers the building is one of the main tourist attractions in Vitória. Direct gasoline transshipment on the cards in Hanau

The city of Hanau in the dynamic economic region of at the Hanau tank terminal has risen. Until now, only gasoil Rhine-Main in the central German state of Hesse is both a could be handled directly. Consequently, in the summer of cultural center and a key transport, industry and technology this year Oiltanking Deutschland also decided to offer the hub. Oiltanking is also represented here and has been service for gasoline in Hanau in the future. However, this cheese bun, and “acai”, a fruit served as a kind operating a regional transshipment terminal for handling requires the installation of a vapor balancing system* at the of sorbet, are unforgettable. Maybe you have significant quantities of gasoline, diesel, and heating oil for jetty, which should take place by the end of the fourth quarter heard of the Bermuda Triangle? The one in Brazil is the Rhine-Main area for 15 years. So far, the tank terminal (as of editorial deadline) — a step that places the Hanau tank just as dangerous, but only to the waistline. Brazil’s has been supplied by railcar and barge, while outgoing terminal in a prime position to meet new market demands. danger zone is in Praia do Canto in Vitória. The “capixaba products are primarily transported by tank truck. torta”, a local baguette, and the famous “moqueca”, a * A tank terminal’s gasoline system needs to be seafood stew are the opposing ends of the triangle. The In the wake of the declining demand for mineral oil, especially closed. A vapor balancing system prevents gases from being emitted into the environment. “icing on the cake”, however, will always be the birth of my in the gasoline business and given the subsequent wish on too, was a perfect mix of Colombians and expatriates from two children, Emilia and Ignacio. As though Vitória was not the part of the German domestic refineries to export the four different countries. As an area, Cartagena is rich in special enough to my wife and me! product to the global market via the ARA region (see also biodiversity, and its history is loaded with adventure. I page 10), the demand for the direct gasoline transshipment liken the entirety of the Cartagena effect to the mouthwatering smell of freshly baked “arepas”, a flatbread “Salad before dessert?” made of ground maize dough or cooked flour. I am very much looking to the banquet of courses still to come in my career. I have had the opportunity now to live Hanau and industry Cartagena’s center is the focal point of its tourism. Narrow in three gorgeous countries in Latin America. The experience The Oiltanking tank terminal in streets from colonial times crisscross one another, and continues to enrich me personally, as well as professionally. Hanau is particularly well-suited buildings are painted eye-catching colors. The wall that That said, my link with Brazil is stronger with each passing for supplying the Rhine-Main region and large parts of Hesse, surrounds the city gives it its name, “Ciudad Amurallada”, day. I am sure that no matter where we may live in the Thuringia and Bavaria. the city surrounded by walls. Cartagena is bustling with future, Brazil will always be our second home. life. There is always something to do. The city is packed with bars and restaurants, all serving food that is tasty and local. One of my favorite meals is fish with coconut, Photo: © Medienzentrum Hanau Photo: © Medienzentrum and “patacon”, mashed and fried plantains. With its perfect Hanau and culture combination of smells and flavors, the dish is a visual and There is a long tradition olfactory pleasure, and a feast for the palate. PORTRAIT Alfredo Lafuente of art and culture in the joined Oiltanking Argentina in Brothers Grimm City (as December 2006 as Project Hanau is often dubbed “Second course” Engineer. In February 2010 he in honor of brothers Jacob (1785), Wilhelm With unbridled gusto is how I would describe how I indulge moved to Vitória, Brazil, to take (1786) and Ludwig Emil in my career’s second course, the one I am enjoying in up the position of Project Grimm (1790), who Brazil where I currently live. Brazil is incredible. There is Manager for the expansion of were born there). just an abundance of attractions, including the people. They the Vitória terminal. He assisted are friendly, and have an unquenchable joy of life and a in the basic engineering of the sincere willingness to help. The country has a beautiful Puerto Bahia project in landscape, pristine beaches and impressive mountains. But Cartagena, Colombia in 2011. In 2012, he returned to the food, I am sure, has helped to shape my opinion. The Brazil where he continues to work as Project Manager. delicious “agua de coco”, coconut water, “pão de queijo”,

20 CONNECTIONS CONNECTIONS 21 The Metropolitan Cathedral With its stunning stained glass windows and impressive towers the building is one of the main tourist attractions in Vitória.

LATIN AMERICA LATIN AMERICA

METAL FOR THE AGES The market for copper is one of the largest of all metals Right formula The expansion behind iron and aluminum. of the terminal in the Port of Matarani will satisfy an ever- increasing storage demand for chemical products in the area.

Logística de Químicos del Sur LQS S.A.C., commonly known as “LQS”, was incorporated in 2006 to satisfy expands at the logistic requirements of the mining industry in southern Peru, Matarani mainly chemical products used in copper and molybdenum production processes. Since LQS commenced its operations for the reception, storage and dispatch of sodium hydrosulfide (NaHS) in More 2007, the terminal has enjoyed a constant occupancy rate. Almost every month a chemical tanker berths in the Port of Matarani to unload NaHS at LQS. On a daily basis, chemical tank trucks are loaded with NaHS and In order to meet the rising demand for NaHS consumption, their loads are transported to mining deposits owned LQS plans to increase its dedicated NaHS storage capacity by major mining companies, which are also LQS by 50 percent. LQS has been working toward diversifying customers. the liquid chemical products stored at its terminal for copper several years now, and has met with success. The

Peru, one of the top producer of gold, zinc, lead and construction of storage capacity for sulfuric acid (H2SO4) tin in Latin America, is also the second largest as well as other infrastructure, such as for unloading of Logística de Químicos del Sur, producer of copper, silver and molybdenum in that tank vessels and loading of railcars and tank trucks, will S.A.C., Peru, is expanding its part of the world. The mining industry has become a begin in 2016. At its completion, the total storage capacity capacity and product range to major economical driver for Peru during the last of the LQS terminal will be 33,000 cbm. decade. This is evident in the rising number of mining meet the ever-growing deposit projects demand for the storage of that are currently chemical products. underway or which What is NaHS? have already been completed. Sodium hydrogensulfide (NaHS) is a chemical product obtained from the combination of hydrogen sulfide (in a gaseous state) and caustic soda (in a liquid state). It is traded in 42 to 45 percent concentrations in aqueous solution that makes for easier transportation and handling. NaHS’ main application is in the mining industry, specifically as a flotation agent for the separation of copper from molybdenum and as a sulfidizer on oxidized ores. Other applications are, for example, in the treatment of leather and wastewater, or in cosmetic products.

22 CONNECTIONS CONNECTIONS 23 Leisure & Entertainment Leisure & Entertainment

What markets have in common is supply and demand. However, Name it, and the big difference is what kind of you’ll find it in … markets you are talking about If you are itching to do something, and where they are located. Join how about strolling around a flea us on a tour of various markets market? While the concept of around the world. We hope you selling an array of goods (mainly second-hand) at a street market is will find one you like! not exactly revolutionary, the source of the term is still a bone of contention, though. One theory till you claims that it dates back to the 1880s and stems from “marché aux puces”, a name originally given to bazaars in Paris which drop … specialized in shabby second-hand stuff of the type that may just well contain fleas. Another explanation Picture: © Paris Tourist Office / Marc Bertrand Office / Marc Bertrand Tourist Picture: © Paris finds itself yet again in Paris but Marché aux Puces de Saint-Ouen this time round in connection with Claiming to be the largest of its kind the city planners’ decision to construct new buildings and streets, in the world, this famous flea market forcing the merchants in question to “flee” and set up their businesses in Paris covers seven hectares and Never fails to reel in people in front of the Porte de Clignancourt gate. This took place in and receives between 120,000 to 180,000 around 1860. However, others believe that it goes back to the colonial visitors each weekend. Are you a keen fish eater? Then a visit to the gigantic pulsating era when Dutch traders settled in New York. They called their outdoor Tsukiji Market in Tokyo, Japan, is an absolute must. It is the market the Vlaie (the Dutch word for swamp), referring to the market’s largest wholesale fish and seafood market in the world, location, which was once a salt marsh. What was initially pronounced comprising hundreds of small stands in a sizeable, crowded “fly” eventually became “flea”. hall, where buyers and sellers scurry along narrow lanes with their carts and trucks. Although it is a serious place of business, it is also open for visitors (8 a.m. to 1 p.m.). Living it up in the world of glitz and glamour However, only a restricted number of visitors can view the famous tuna auctions and wholesale markets. Since it started Dubai Gold Souk Are you dreaming about striking gold? If yes, trading in 1935, the market has expanded both in scale and The gold market’s then you simply have to check out Dubai Gold function over the years. Today more than 400 types of seafood traditional charm Souk in the commercial business center in sparkles with an are sold from the early hours on. You can buy anything from Deira, where over three hundred retailers trade endless dazzling endless varieties of inexpensive seaweed to costly caviar, tiny display of jewelry. almost exclusively in jewelry. It is estimated sardines to giant tuna fish and so on. In 2013, around 484,000 that there are approximately ten tons of gold tons of marine products were handled. The biggest fish to date at the souk at any given time. The gold trade weighed in at a whopping 497 kg and was auctioned off for boomed during the 1940s as a result of Dubai’s US $ 28,000 in 1995, and the highest price paid for a 222 kg free trade policies, which encouraged tuna was a staggering US $ 1.76 million in 2013! entrepreneurs from India and Iran to set up shop there. The Emirates is one of the biggest physical re-distributors of gold, importing three Tsukiji Market The largest wholesale fish hundred tons of gold on average per year. At and seafood market in the world is planning to have moved to a new site in Tokyo, Toyosu (an the souk, you are spoilt for choice when it

24 CONNECTIONS CONNECTIONS 25 Leisure & Entertainment Leisure & Entertainment

The beef bonanza Where billions change hands

Famed for its beef all over elevated walkways ease the And now over to the stock market, the New York Stock the world, Argentina has process of examining the cattle in Exchange (NYSE), also nicknamed “Big Board”, is the place 11 Wall Street The New York its Mercado de Liniers in compounds. The ultimate target is to see and be seen. It is the oldest stock exchange in the Stock Exchange has its headquarters here. The famous building with its Buenos Aires. Today, the to sell all the livestock on the day United States and the world’s largest in terms of the market portentous Romanesque façade was cattle market, which first of arrival. And on Fridays, all the capitalization of its listed stocks. Its history goes back to the built by one of New York’s leading opened its doors in 1901, stock must be sold off as the signing of the Buttonwood Agreement, architects, George B. Post, in 1903. constitutes the biggest cattle market is closed on the weekend. which took place on May 17, 1792, by 24 market worldwide, auctioning Originally cows were brought into high-profile brokers and merchants who off approximately 9,000 the country by Spanish decided to trade securities on a livestock a day (from Monday conquistadors in 1536. Today, commission basis. Business soon took to Friday). Gauchos on horses cattle is the second most important off and in 1817 the New York Stock & herd the cattle, which are first line of business in Argentina and it Exchange Board was established, laying moved on transporters through is said that the meat industry is a down the rules regarding business a labyrinth of wooden fences to major yardstick for the weal and conduct. Today, the NYSE trades in a reach the market. Here, woe of the country. continuous auction format, i.e. traders execute stock transactions on behalf of their investors. The NYSE opens from Monday to Friday (9.30 a.m. to 4 p.m.), The good old corner store closes early on very rare occasions and has nine days of vacation a year. For Buying your daily supplies in a shop just around the maids back then and a child’s way of addressing security reasons, however, the NYSE is corner, getting the latest gossip and having a cheerful older women, which underlines the direct contact no longer open for public visits. chit-chat with the owner who, in case you are a bit customers used to have with shop owners. The short, does not mind you taking goods on credit! exhibits belonged to Tackenberg’s grocery shop, Those were the days of the good old mom-and-pop which can pride itself in a tradition which dates back A flavor of Mumbai shops. But most of them are well and truly gone and to 1704. It closed shop in 1980. a lot has changed since the Mumbai, India’s financial capital, is a major draw and introduction of the “supermarket” picture: © Felix-Nussbaum-Haus / Kulturgeschichtliches Museum Osnabrück, E 3032 delight for connoisseurs of world-heritage Victorian and as we know it today. The first Gothic styles of architecture. One such building is one called the King Kullen Crawford Market, Mumbai’s most famous bustling spice Grocery Company opened in bazaar, which was named after Arthur Crawford, the first New York in 1930. municipal commissioner of the city. While most spice markets in India are outdoors, Crawford Market is one of In Osnabrück’s Villa Schlikker, the few to be located inside. It is home to Mirchi Galli Germany, you can travel back (which, literally translated, means chili lane), aptly named in time. Here, in the for the freshly ground Indian spices sold there all year Kulturgeschichtliches Museum round. Whether it be dried ground ginger, turmeric or (cultural historical museum), brown mustard, you are most likely to find top-notch eye-witness accounts of everyday quality in this hot spot. During the spice harvest (typically life in the 20th century come from March to May, when Indian homemakers prepare alive. Among the displays, you Hot in the city The spicy pickles for the entire year), the market comes alive choice of the world’s can also find a genuine example with the aromatic fragrance of magical Indian spices such as red hot chili peppers, beloved spices on offer of an “aunt Emma shop”, which is at the vibrant Crawford cumin and cardamom, all sold at wholesale prices. The place is also buzzing and how Germans affectionately call Market will definitely pulsating with Indian distributors from all parts of the country who go there to clinch these redundant grocery shops. spice up your visit to good deals. The expression probably refers to Mumbai, India. As well as everyday spices, the stunning selection of stalls also stock everything the name commonly given to from exotic cinnamon quills, snow mountain garlic, garam masala (a mix of unique Indian spices) to an assortment of after dinner mints (called mukhwas), making a visit to Crawford Market a must for all foodies.

26 CONNECTIONS CONNECTIONS 27 People & Places People & Places

Value for money Bargaining, bartering, haggling — whatever you anticipate a bit of haggling and automatically differences in bargaining practices between wish to call it — pitch their prices higher than what they really countries, most skills are universal and it might is standard fare expect to cash in. just come in handy to know a few. Here are some in a great deal valuable and, of course, free tips to help you get a of countries around the So, what can you do to master the local habits and reasonable price when bargain hunting: world. enjoy your next shopping spree if bartering is customary? Although there might be some slight

In anticipation of browsing around the stores: Do some research to find Before entering into a 1 out what the locals pay and what the discussion: Decide on regular price would be. 2 your own bottom line: What is the maximum price you are prepared to pay? What to say: Knowing a few basics like “how much”, 3 “please”, “thank you” and maybe a few numbers in How to say it: While bargaining in the foreign language shows Africa is somewhat loud and animated, an interest in the other 4 you would be better off steering clear of culture and might go down confrontations in Southeast Asia and it well with the seller. While Bargain your way would be advisable to use toned-down some suggest asking for language. Do avoid words like “no” the best price instead of and expressing disapproval such as making the first offer, around the world “… expensive, isn’t it … ”? Do not forget others are convinced that to keep on smiling and remain polite at smart shoppers who make Haggling is a fairly uncommon practice for most people from Europe and all times. the first offer end up North America, and some even find the thought of it so uncomfortable that clinching the perfect deal. they try to avoid it at all costs. In other countries, however, bargaining in markets and stores is all part and parcel of everyday life and sometimes it Where to bargain: Find would even be considered rude not to debate the price. out where it is acceptable to It is all in the timing: It might be easier 6 haggle: In Southeast Asia to pick up the good buy later on in the day or South America, you can When you live in or visit a country However, things can get a bit tricky — 5 as sellers are more likely to be looking out do it almost anywhere while for one last sale. Having said that, it could where haggling is not standard fare and especially for those who are not used to in other countries bargaining pay off to be the first one in the shop in the only giveaway in town is when you it — in countries where bargaining is is limited to markets or Asia, for example: Superstitious sellers get lucky in the sales or collect discount almost a matter of earning respect and privately owned stores. coupons, then shopping is a breeze: If failure to do so might be viewed as a will offer you a good deal fearing that you something catches your eye and you sign of arrogance of the financial elite or will leave the shop empty-handed, which want to snap it up, the price indicated is even an insult. An added drawback for may be interpreted as a bad omen for the the amount you have to fork out and non-hagglers is that they run the risk of rest of the day’s sales. everyone knows where they stand. paying through the nose as vendors

28 CONNECTIONS CONNECTIONS 29 Latin America Latin America

Peruvian market presence Oiltanking is a significant market player in the world of bulk liquid logistics in Peru.

Caracas Oiltanking, along with its affiliate Oiltanking Peru VENEZUELA S.A.C., established itself in the Latin American market COLOMBIA Bogotá North Atlantic Ocean Quito in Peru in 1998. Together with Graña y Montero ECUADOR PERU Terminal Petrolera S.A. (through Consorcio Terminales), Network (9) BRAZIL Pure Biofuels Oiltanking operates nine fuel storage terminals, all of Brasilia Terminal – Callao La Paz which are owned by the state company, Petróleos del Lima Office BOLIVIA Matarani Marine Berth Perú – Petroperú S.A. Four terminals are located in the Pisco-Camisea – Paracas PARAGUAY Asunción ARGEN- north of the country (Supe, Chimbote, Salaverry and CHILE TINA URUGUAY Santiago Eten), and five in the south (Pisco, Mollendo, Ilo, Cusco Buenos Montevideo de Chile Aires South and Juliaca). All nine terminals comprise a strategic Pacific Ocean Bogota link in the logistic chain and are crucial for the South Atlantic Ocean distribution of fuel within the country.

The operation contracts for the terminals in the north COLOMBIA and south entered into force in 1997. The validity Tumaco Trans Amazonic Pipeline (OTA) period was for 15 years, which also had an extension Esmeraldas Lago agreement that expired on July 31, 2014. The service Trans Quito Agrio Ecuador scope of the contracts included key elements such as Pipeline Shushu- (SOTE) Heavy Crude findi the reception of fuels (by land or sea), storage, and Manta Pipeline (OCP) ECUADOR Guayaquil transfer to tank trucks. In addition, the contracts Andoas

covered two types of infrastructure investments Iquitos stipulated by Petroperú: mandatory and reimbursable.

The investments needed to be made during the duration Talara Yanayacu of the contracts, and in accordance with an investment North Peru Pipeline schedule proposed by Petroperú. Puerto Bayovar BRAZIL Chiclayo CT Eten March 2014 saw Petroperú call for a new bidding Trujillo Pucallpa Salaverry process for the operation of storage terminals in the CT Aguaytia north, center and south of the country. The scope of the CT Chimbote PERU 2014 contracts correspond to those agreed upon in CT Supe La Camisea Gas 1997, but they are for 20 years and come with a higher Pampilla Pipeline Malvinas Successful renewal Pure Biofuels, Callao Lima Office level of committed and reimbursable investments. On CT Conchan Cusco the basis of their excellent long-term business Camisea NGL of operation contracts CT Pisco Pipeline relationship, Oiltanking Perú S.A.C. and Graña y Camisea Montero Petrolera S.A. decided to participate in the Marine Berth San Nicolas CT Juliaca LQS, bidding as a consortium under the name, Terminales Puno In June 2014, the consortium formed by Oiltanking Matarani del Perú. Arequipa Peru S.A.C. and Graña y Montero Petrolera S.A. CT Mollendo CT Ilo was named the winner of a competitive bidding The consortium, Terminales del Perú, won the bid to Arica process launched by Petroperú S.A. The operate the terminals in Peru’s north, as well as the CHILE consortium will continue operating the terminals terminal in Callao in June 2014. Consorcio Terminales Iquique will also carry on operating the terminals in the south CT CT Terminal in the north and south of Peru, and has acquired Terminal of the country for one more year. The opportunity to go / cities on with its services over the next 20 years demonstrates Refinery the contract for the terminal in Callao, nearby the Pipeline the commitment that Oiltanking and Graña y Montero Pipeline Gas & NGL City of Lima. Rail Antofagasta have to Peru. Moreover, it mirrors the level of trust that Camisea Marine Berth Petroperú has in the two partners. Important distribution function Oiltanking operates nine fuel storage terminals in Peru.

30 CONNECTIONS CONNECTIONS 31 734094545239523082 734094545239523082 Leisure & Entertainment Leisure & Entertainment 403479234802340823 403479234802340823 840238042480524805 840238042480524805

predominantly operate domestic product flows in the long run. At the terminals, only investing in foreign same time, substantial investments terminals in isolated cases. are currently being made in new 248602486024680246NUMBER 248602486024680246refining capacities, particularly in Around the world, the demand for the Asia and the Middle East, in order to physical transportation, storage and meet rising oil product requirements. handling of oil and gas products and Structural shifts in supply and 802468024473462345 802468024473462345chemicals has seen a healthy uptick demand in key production and over the last few years. Rising trade distribution regions should result in flows of bulk liquid goods are at the further increases in interregional oil forefront of this development, which product transport volumes. 784025072358249502 784025072358249502again are attributable to a number of Meanwhile, in line with the energy factors. These include rising global and GDP growth, the global demand energy consumption, the opening and for chemicals is set to continue on its liberalization of markets, a growing long-term growth path. And finally, imbalance – on both a regional and product blending and treatment will 935802357023758245 935802357023758245global level – between the areas of remain a key component of storage production and consumption of oil provider service portfolios as fuel products and chemicals, and a wider standards will continue to differ variety of product specifications due substantially from country to country. 823507235087230750 823507235087230750to stricter environmental rules and To sum up, there are various regulations for the transportation and developments and trends that – in consumption of energy. Moreover, many cases, irrespective of economic over 10 years of bullish sentiments in or cyclical factors – will continue to 5823752359769568922 582375235976956892the oil market have injected new life boost the demand for tank storage to many oil-producing countries and capacity and other logistical Since its launch as an independent acquisitions, expansions and new regions – the prime example being infrastructure in the future. tank terminal service-provider in constructions. North America – resulting in changing Consequently, Oiltanking is looking 1972, Oiltanking2 has come on in leaps trade-flow patterns that require new forward to playing its role in meeting 734094545239523082and bounds.* With “independent” As of today, Vopak and Oiltanking are 734094545239523082infrastructure. the world’s energy infrastructure referring to the operation of storage the only two truly independent tank requirements, thereby pursuing its terminals for third-party customers, storage companies with a worldwide Looking to the future, there are long-term growth path. the independent liquid storage presence. Both companies own a strong indications that substantial 403479234802340823industry has also undergone large global tank storage portfolio 403479234802340823additional infrastructure will be substantial changes over the last 30 and both are represented with their required around the world in the year years. What started as an integrated own terminals at all four major oil ahead in order to link up the logistic part of the production process has hubs (ARA, US Gulf Coast, Arabian networks of producers, traders and evolved into a mature, irreplaceable Gulf and Greater Singapore). While distributors. In this respect, the North * Over the last 42 years, the initial capacity of Oiltanking’s tank terminals of approximately 840238042480524805segment of the oil and chemical other players have a regional or 840238042480524805American production bonanza has 1.7 million cbm has increased to 19.2 million supply chain, with the storage of bulk national focus or are considerably and will continue to have a major cbm as of the end of 2014 with terminals spread over 72 locations in 23 countries. liquids as its core business. While the smaller in size, most North American impact on global energy markets and independent storage business still companies (e.g. KinderMorgan, 248602486024680246includes many small and local NuStar, Buckeye, IMTT, Plains All 248602486024680246 companies that often own just a few American) are primarily engaged as terminals, some large, well-financed pipeline operators and less as tank companies have emerged through storage operators. Moreover, they

802468024473462345 802468024473462345picture: © China National Tourist Office 78402507235824950232 CONNECTIONS 784025072358249502CONNECTIONS 33 People & Places READER' S CORNER

Europe After a construction phase of ... and action! almost a year, the expansion of the Duisburg Try to solve our riddle and don't miss out on the chance to win! tank terminal to include a tank with a capacity of 2,500 cbm was successfully Please send your entries to: [email protected], or contact completed in February 2014. The tank is to us by post: Oiltanking GmbH, connections Team, Admiralitaetstrasse 55, be used for the storage and throughput of 20459 Hamburg, Germany, or by fax: +49 40 370 99-499. biodiesel. Through its launch and the easing of the pressure on the gas-oil business, Oiltanking Deutschland hopes to be able to increase the tank terminal’s turnover. CONGRATULATIONS In a Quiz solution It is you …! Hurray! We read a lot of correct answers Ho, Oiltanking Stolthaven Antwerp, stating that the four ships would meet again. Olaf Lippka, Total Deutschland, Jesús nutshell These readers did not get tangled in any seaman’s Medrano, Oiltanking Andina Services yarn. Far from it. They knew all too well that it S.A.C., Wendy Van Poucke Oiltanking would take the ships exactly 48 weeks to meet. Ghent, and Zheng Yang, Oiltanking Now, we will make sure that the lucky winners Nanjing Co., will not have to wait as Paul Ahrens, Oiltanking Deutschland, Catherine long to get their Oiltanking jacket.

Europe The Bendorf tank terminal north of Koblenz, Germany, NEW QUIZ is one of the most important for the supply of the Middle Rhine region and is very well received by customers. The transshipment Thinking out of gasoline, diesel and heating oil is constantly on the increase. As This time round a merchant use. Do you happen to know the truck loading stations were a “bit worse for wear”, the liquid- of the box is in need of your logic and how many cartons he will sealed coating underneath nine loading bays had to be modernized. advice as he is struggling need, and how many big and In consultation with the supervisory authorities, Oiltanking opted with a new incoming order. small boxes in total there will for a large-scale flashing of the filling traces. The advantage of this He has to send 96 boxes in be? Hopefully you do. approach is that it enables a swift reconstruction as deep foundations can be dispensed with, which means that one shipment, and can only the loading does not have to be restricted unnecessarily – much to the delight of the customers and Oiltanking. place eight or ten small You are more than welcome The facility has been in operation for three months and lived up to its promise: it is watertight! boxes in one carton. The only to share your knowledge information he gets is that with us before the delivery he has to stack more large date (week 5) is due and win Europe On September 9, 2014 the 26 members of the boxes than small boxes, an Oiltanking Wellness Set. Unternehmensverband Hafen Hamburg e.V. (UVHH) harbor but he is not briefed on the Good luck to all of you! board elected a new steering committee. Gunther Bonz, number of cartons he can Eurogate Container Terminal Hamburg GmbH, was confirmed in his office as president for another three years and the five new vice-presidents also include Ulfert Cornelius from Oiltanking Deutschland. The main focus areas of the new steering committee’s work include harbor development and financing, the reinforcement of the modern universal port and small and I do’s and goo-goos medium-sized businesses, and the strengthening and expansion of the Kiel Canal. For over 60 years, UVHH has been championing Talking about markets … weddings and babies also mean big business. From the common economic and harbor-related interests of its wedding planners to interior design consultants for the baby’s room, the market picture: © UVHH members on the political, administrative and public stage. has been flooded with a wealth of service providers. Have you had a “market New and re-elected members of UVHH share” since April 2013? Then let us know! We look forward to receiving pictures UVHH serves as an umbrella organization for over 100 Hamburg- (from left) Gunther Bonz, Rainer Fabian, Ulfert of your wedding and/or the new addition to the family by week 5 at the latest. based companies for transshipment and firms that perform Cornelius, Holger Jungerberg, Heinz Brandt, upstream and downstream activities in this field. Robert M. Eckelmann and Norman Zurke.

34 CONNECTIONS CONNECTIONS 35 Last but not Least

Fancy floors with flavor

In October 2014, the ceremony to inaugurate the eagerly awaited “Markthal” (Market Hall) in Rotterdam took place. The Markthal is the first indoor food market in the Netherlands. Under a single roof which in itself is a visual delicacy are now 96 fresh produce units. A separate area for food refrigeration, storage and preparation is located below the market floor where restaurants and food shops are also to be found. The Markthal’s impressive 40 m high arch is the design of the Dutch architect, Winy Maas, of the Rotterdam architectural firm, MVRDV. The front and back of the arch are covered with a flexible suspended glass façade that is the largest of its kind in Europe, which allows for maximum transparency with minimum structure. Inside, the Markthal’s ceiling is yet another spectacular piece of art where massive depictions of fruit, flowers, and insects are presented. Entitled “The Horn of Plenty”, Dutch artist, Arno Coenen, created the work using 4,500 panels that measure a total of 11,000 m2. The sublimation print on aluminum sheets gives the impression of photographs. In fact, the ceiling’s images are the result of computer mastery. The opening hours for the Markthal are from 9 a.m. to 8 p.m. seven days a week. That leaves bags of time for visitors to experience the Markthal’s many flavors. And, with 228 apartments located in the arch itself the market lies literally at the feet of the residents.