PORT STORAGE DEVELOPMENT: A GLOBAL OUTLOOK
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www.tankworldnews.com NEWS
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Dear colleague, For all the changes that the international storage if not busier, than ever it opens up an opportunity industry undergoes, let us not forget that one of the for Malaysia to take business from suppliers keen basic reasons of any storage is to create a buffer to have their product turned round quicker.” in the supply chain and create an opportunity to These changes are echoed by Mark Korzec, Many thanks for trade and sell at a profit. And in this respect there Director of Oil and Gas Sales, Colfax Corporation is no better place to put a tank than at a maritime who spoke exclusively to Tank World News downloading port. These changes are a continuation of those earlier in the year; “It’s a really interesting time seen in recent years and shifting worldwide trends at the moment, and what it really comes down Port Storage in trade flows and development of both crude and to is a dramatic change in the movement of refined products have created both challenges oil. Traditionally it would flow from east and in and opportunities for the storage landscape for particular the Middle East, to the West but now Development: A the world’s ports. This e-book aims to cast a light we are seeing an increasing movement from west on some of these changes. It’s not just another to east. There are a couple of factors causing this Global Outlook collection of facts and figures but an insight into the change including the USA exporting its own oil, a reality of the industry. rising demand in Asia and the accessing of African oil. In the last 5 years alone there have been over 70 I’m the editor of www.tankworldnews.com but discoveries in Sub-Saharan African and the decline also a contributor and Advisory Board member of in demand from Europe.” Tank World Expo (Dubai 14-15 April, 2015) the only Contents dedicated, global, strategic conference for C-level “Storage is not the prime objective; it’s now the executives from government, oil and chemical speed of delivery. And this is one of the dynamic companies, ports and terminal operators. Many of changes we are seeing from all concerned in the 1 Introductory overview the themes and issues contained within this e-book value chain. And anyone working in our industry will be developed at this event and we hope to see has to be extremely flexible. The variety of fluids 2 Port Profile: Salalah you in Dubai next year. demanded now is growing all the time and the speed at which the demand for them changes 3 Port Profile: Tarragona As means of a brief introduction, the four ongoing is quickening. There are so many more types changes for ports and storage are: trade flows of blends now than when I started out, taking 4 Port Profile: Jebel Ali transforming due to US shale liquids and Canadian advantage of market desires is a major opportunity” oil sands, the re-establishing of dominance of the continued Korzec. 5 Port Profile: Amsterdam oil market of USA along with Russia, the Middle East becoming as much a consumer as a producer These changes are of four major global port 6 Port Profile: Sohar and the countries of Asia-Pacific becoming more centres of storage around the world: 1) Fujairah dependent on OPEC countries for oil supplies. and its near neighbours 2) Greater Singapore 3) The 7 Port Profile: Zeeland Antwerp-Rotterdam-Amsterdam (ARA) range in In a recent interview with Peter Mackay, Editor of which we must also include the emerging Benelux 8 Port Profile: Louisiana Hazardous Cargo Bulletin, I asked him to explain ports of Ghent and Zeeland and 4) the US Gulf of further these changes; “There is plenty going on, which Houston and Beaumont still dominate. 9 Advert in fact we may not have been in such a period of flux since the 1970s. The USA is undergoing a huge For the port of Fujairah and its neighbours change, with its accessing of domestic supplies of clustered around the Straits of Hormuz , the busiest crude and its shift from being an importer of LNG to passageway for oil tankers in the world, with an exporter being nothing short of a revolution. With over 17 million barrels (or 20% of the total world its own supply of oil it has in some ways disengaged supply) moving through the narrow stretch of water from the global market in terms of pricing, to fill up each day, expansion is still the name of the game. your car is cheaper in the US than anywhere else in Royal Vopak recently announced the 7th phase of the world bar some of the Gulf States.” expansion at Vopak Horizon Fujairah Limited, adding 478,000 cbm of storage capacity for crude oil. Mackay added; “But if the exports of US LNG and crude become more significant they will get Speaking at the announcement; Saeed Khoory, plugged back into the global market and this is Chief Executive Officer of ENOC, said: “Over the likely to have an effect on the domestic price. Let years, Fujairah has firmly underlined its global us not forget that in the US, the price of filling credentials as one of the Top 3 oil storage hubs, up the car is a major political issue! Asia too is next to Rotterdam and Singapore. The addition seeing significant changes to the market. Just to of more storage space at Vopak Horizon Fujairah take one example, Indonesia, which has gone from will significantly support the region’s oil trade being the world’s largest LNG supplier to being an sector, and enhance the convenience of all key importer. With the upstream running down and the stakeholders by providing world-class logistics downstream ramping up where does that leave the support. The growth will also contribute to further existing infrastructure? Whilst Singapore is as busy, energizing the local economy of Fujairah.”
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2 www.tankworldnews.com Port Storage Development: A Global Outlook NEWS
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Continued from page 1: For Singapore, expansion is also key. But the trade flows are reversing – with North American city-state is fast running out of the space it needs crude going out of the ports across its seaboard for to continue to grow. Singapore can currently store the first time since the 1940s. Many analysts now around 11 million cubic meters of chemicals, oil see America heading towards “Oil Independence” and liquid fuels like gasoline and diesel in its tank driven by shale drilling and oil-sands mining. farms. Whilst the Port of Singapore is the busiest According to the federal Energy Information container transhipment hub in the world offering Administration (EIA), Gulf Coast crude exports connectivity to over 600 ports in 123 countries. But averaged 134,000 barrels per day during the first as Singapore has no domestic oil reserves and so quarter of 2014, nearly four times higher than the must import all its crude it has developed first class region shipped out last year. Overall, U.S. exports refining, storage and distribution facilities around have been rising steadily since late last year, and its ports. However, as a result of running out of setting records all along the way. space and capacity, Singapore is now investing in port facilities in Malaysia and Indonesia, all within From a port perspective, crude exports are still an hour’s sail away from Keppel Harbour. largely forbidden by a 39 year-old law (although there are exceptions for some California crude, In Europe, the collapse of the refinery sector and Alaska oil and shipments to Canada) however, decrease in utilisation is pointing towards a port trend gasoline and other refined products also can be of less production and more trading and storage. freely sold overseas and this ban on crude exports Major beneficiaries from this are the Antwerp- is currently a point of debate. Most of the Gulf Coast Rotterdam-Amsterdam (ARA) range (+ fellow crude flowed out of the Port of Houston, although Benelux ports) of whom traders appreciate their easy other ports in Texas and Louisiana also exported a deep-sea access for the large Suezmax and Aframax reasonable share. Should the ban on crude exports vessels, security and technological innovation. overcome Washington policymakers objections a further significant reorientation of the US port I asked Peter Geertse, Commercial Manager Liquid business could be underway. Bulk of Zeeland Ports for some greater insight into the changes; “In Northwestern Europe we see a Each of the articles within this e-book has or shift from refining and production to logistics. While will be soon published on Tank World News more production moves closer to the source, the oil www.TankWorldNews.com which offers a truly producing countries, there is an increasing demand global perspective on international tank storage. for storage, blending and distribution of finished Recently re-launched with a fresh new look to products in Europe. Biofuels and alternative fuels ensure you are enjoying the latest news and such as LNG and CNG are changing the market become a subscriber for free today. rapidly, asking for more variety of (smaller) tanks and blending facilities, compared to traditional We hope this e-book casts a spotlight on some of storage of crude oil.“ We hear more from Peter the changes we are seeing around the world. And later in the e-book. many thanks to all the contributors who took time to speak to me and help make this book happen. And finally we come to the United States where, We hope you enjoy this e-book and find it with domestic production at 28 year highs, the stimulating, informative and useful.
Regards and thanks,
Luke Upton Editor Tank World News
PS – If you would like to contribute to a future e-book, or TankWorld, please email: [email protected]
3 www.tankworldnews.com Port Storage Development: A Global Outlook Port Profile: Salalah
The Port of Salalah, the largest port in Oman, is a world class trans-shipment hub in the West Central Asia Region. Situated right at the major East-West shipping lanes, Salalah enjoys an attractive strategic location in the heart of the Indian Ocean Rim and caters to some of the world’s largest ocean going vessels. It’s currently undergoing expansion of its infrastructure to meet the growing demands of the region and beyond, one such key development is the ongoing construction of a dedicated liquid jetty at the Port, the need of a dedicated liquid terminal has risen owing to growing demands from various liquid customers based out of Salalah Free Zone (SFZ) and others alike. To find out more we spoke to Syed Talib Agha a Project Manager at the Port.
What are some of the challenges that a modern Q port faces? SFZ customers and others are investing and setting up their plant and storage terminals close to the Port. The challenge for Port of Salalah is to function as ‘Single Operator’ and cater to wide range of products, plan the berth occupancy of its customers, optimize the usage of (Marine Loading Arms -MLAS), improve pumping rates of its present customers, provide general and specific utility services to its customers and their vessels.
What key developments does the Port of Salalah Q have coming up? The plans of interlinking pipelines of customers to their respective storage terminals will improve flexibility, allow for blending of products, optimize berth occupancy and shall attract additional customers to the port.
The jetty itself would cater to maximum vessel up to 120000 MTS with maximum length over all of 300 meters and draft of -18 mts. Various products to be handled at the two liquid jetties are gases, petroleum products, petro chemicals and chemicals and throughputs expected to the tune of 7 Million Metric tons.
The jetty will have state of the art fire-fighting facility designed as per the international standards. A control room close to the jetty shall serve as a coordination center for jetty operations. Controls of firefighting and gas detection system shall also be managed from this room. Since the jetties lie at the farther end of the Port and liquid customers scattered at the other ends, challenge of conveying pipelines from origin to destination required for a dedicated pipe rack system which is currently under construction at the Port. In addition to the two liquid jetties, general cargo berths at drafts of -18 mts CD are also being constructed at the Port, the general berths shall predominantly cater to the growing demands of limestone export from OMAN, besides handling other general cargo commodities. The general cargo and liquid terminal is slated for year-end 2014 completion.
In addition to the terminals under construction. Port of Salalah shall also be witnessing consultancy services for rehabilitation of its existing General Cargo Terminal. The expanse of this consultancy services is vast and shall also include the much needed ‘service corridor’ from SFZ boundaries to upcoming jetty in the Port. The said works have been tendered by Ministry of Transport and Communication and three consultants have been shortlisted for the job, with the financial evaluation of the tenders underway, award of consultancy services is expected tentatively by year end. (*note this is an guess estimate by PDI)
4 www.tankworldnews.com Port Storage Development: A Global Outlook Port Profile: Tarragona Port Details
The Port of Tarragona is located in one of the most important industrial areas on the Entrances: Mediterranean, at the confluence of two zones of outstanding economic growth: the Entrance Channel 450 m width, Mediterranean arc and the Ebro corridor. It is an area with Spain’s most important 2400 m length,26 m depth petrochemical complex and a large concentration of manufacturing and processing industries, that coexist alongside a first-class commercial and tourism sector. In this Water area: 49.891.000 m2 area of the country lays the biggest concentration of industrial and logistic companies of Spain, and there are some future projects for more investments of these sectors, Land area: 5.428.000 m2 as a consequence of the excellent location and accessibility from the area to the inner European markets. Quays and Berths: 12.961 metres of quays with 113 berths The Port region is seeing some important investments taking place, such as the Tug assistance: TAVs (high-speed train) that will connect Madrid to the French border and Tarragona 6 tugs from 4.500 HP to 5.516 HP and Valencia to the French border. The Port of Tarragona and its hinterland are also located at a point where the country’s main land communication routes converge. This Chemical wharf available for vessels combination of business activity and its location make the port a key strategic enclave up to 16.5 meters depth. on the access routes to the Iberian Peninsula and the European continent and establish it as one of the major economic driving forces of the area. Chemical storage and distribution hub in the Mediterranean Owing to all these characteristics, the Port of Tarragona is one of the best located ports, not only by its proximity, but also because it has at disposal a wide space offer, Over 19,000,000 tons of liquid bulk no “traffic jams”, and the best road communications at the berths themselves. The Port maritime traffic of Tarragona, with more than 33 million tons of cargo handled during the year 2012, continues to be one of the most important ports within the Spanish state port system, Pipelines transport: one of the leading ports in the Mediterranean, and above all, one of the most important 3 pipelines connected to jetties gateways for cargo coming into the European Union. and berths. Asesa and Repsol jetties; Chemical Pipelines
Tank World was keen gain some further insight so we spoke to Jordi Armengol, Commercial and Business Development Manager of the Port of Tarragona to find out more.
As a leading port in the region, what are some of the Stable political and regulatory environments are essentials for the Q trends you are seeing in regard to working with storage? storage industry. i.e. particular requests, blends, demands, technology, etc. What are some of the challenges that a modern Higher standards in logistics services and dedicated services are Q becoming more important in the storage industry. Operational port faces? safety and cost-effectiveness of the storage terminals are Globalization of trade and the development of larger hinterland areas achieved through supportive services as drumming, blending, have led to shipping and intermodal alliances to handle the global heating, waste water treatment, etc. The ports should be able to nature of the supply chain. In that sense, modern and efficient ports are take appropriate actions to meet their needs and offer adaptable necessary to facilitate trade and development in order to offer efficient services and facilities to cater for other products if it is necessary. and reliable services to ships and cargo. Excellent communication Oil-producers do not invest in storage. Potential investors are tank systems, documentation and customs procedures are key factors to storage companies and major oil and chemical trading companies. improve timing and forecasting in freight transportations. Likewise, the Blending capacity and specialized or segregated storage for Port of Tarragona is continuously progressing as a functional element in refined and un-refined products, mainly gases, chemicals and oil the dynamic logistics chains through which commodities and goods flow. products, are high on demand by traders. The Spanish petrochemical industry has undergone intensive The key factor to investors is location, location and location. Hub internationalization. The sector is also a significant generator of location, as the Port of Tarragona is in the Mediterranean, or employment and a leading sector in terms of investment in R&D+i end users sites are taken into account for strategic decisions and environmental protection. However, the current threats to the made by storage terminals. Small risk of overcapacity or long- chemical sector are diverse. They range from shale gas production life infrastructures are also key issues to be considered in terms to the new chemical plants being built in the Middle East. In the of terminals profitability and efficiency. The Ports have to work complex environment we are currently experiencing, the Port of with storage companies in setting up implementing new storage Tarragona needs to maximize its strengths, boasting synergies, farms or in developing facilities in the Port premises. In that case, large scale economies and added value in order to maximize the partner role of the Port is critical to deal with administrative revenue from both new and existing private investors. procedures to get business permits, consents and licenses. continued...
5 www.tankworldnews.com Port Storage Development: A Global Outlook Port Profile: Tarragona (cont.)
Nowadays, the most important challenges are to consolidate the existing business, to enhance the value of what we have already achieved over 40 years of activity in the petrochemical industry and to continue investing in new infrastructures as the Port of Tarragona is one of the main generators of wealth in the region.
What key developments does the Port of Tarragona have Q coming up? The Port of Tarragona and AEQT (Association of Chemical and Petrochemical companies in Tarragona) are the founding members of ChemMed Tarragona, the Chemical Cluster for Sustainability in the Mediterranean Region. The initiative is focused on the potential of the cluster, as the first in the Mediterranean area and in the South of Europe.
The objective is to promote the appeal of the cluster on an international level and demonstrate how competitive the territory is in manufacture, research and logistics for the Chemical Industry.
The constitution of ChemMed Tarragona as an industrial, logistic, academic and scientific chemical cluster is a unique undertaking in Spain. Service and manufacture companies, the Port, the Unions, the University, training centers, research centers, Chambers of Commerce and Administrative bodies have all joined forces in an effort to position Tarragona on the Global market as one of the top sites in the Chemical Industry.
The aim of ChemMed Tarragona is to develop and enhance the appeal and competiveness of the area for industry, research and logistics in the chemical plant sector.
ChemMed Tarragona is a response to the necessity to attract and generate new activities which will give added value to Tarragona. It is a chemical plant cluster, a strategic Mediterranean hub and a first class logistics center which will offer improved competitiveness and strengthen the current position of the petrochemical terminal in Tarragona.
Tarragona boasts the most important chemical industry site located in South Europe on the Mediterranean. The production from the chemical industries in Tarragona represents 25% of the Spanish industry and accounts for around 50% of the plastics produced in Spain. It is also a highly internationalized sector with 60% of its turnover generated by goods for export and it is responsible for more than 60% of the maritime traffic handled in the Port of Tarragona.
ChemMed Tarragona generates stable, qualified and quality employment. Currently the two promoters AEQT and Tarragona Port directly employ more than 13,000 people and another 35,000 indirectly. Over a hundred companies are integrated into ChemMed Tarragona as Repsol, Vopak Terquimsa, Dow, Basf, Tepsa, Clariant, etc. The intermodal terminal or the wide lane international connection that will allow goods to be transported from the Port straight to the center of Europe in better conditions are some of the infrastructures that will open us up to new possibilities an widen the our appeal.
The Rail Terminal offers 4 tracks in mix gauge (Iberian and UIC) for trains up to 750 m length (1,000 tons capability); direct electrified access from the General Railway Line (2015 expected); a strategic location, in the new logistics service area of the port (100 hectares) and in the strategic node of the TEN-T core network.
6 www.tankworldnews.com Port Storage Development: A Global Outlook Port Profile: Jebel Ali
Jebel Ali Port is the flagship of DP World’s portfolio of 65 marine The Port offers customers highly reliable, secure, simple and terminals across six continents, including new developments underway efficient systems in addition to state-of the- art infrastructure to in India, Africa, Europe and the Middle East. Built on a long history of optimise their logistics and streamline the supply chain. expansion and innovation, the port is today a premier gateway for over 90 weekly services connecting more than 140 ports across the world. DP World UAE terminals delivered another strong performance handling 7.4 million TEU in the first half of 2014, representing The poly-functional terminal facilities spread over 20 km of growth of 14.1%. Jebel Ali Port’s handling capacity is 15 million quayside features 23 container berths and 78 quay cranes, TEU container increasing to 19 million TEU by the end of the year. geared to handle next generation vessels. Jebel Ali Port is an As both the gateway to the wider region and a hub for trade, Jebel integrated multi-modal hub, offering sea, air and land connectivity Ali handles over one million TEU containers on monthly bases complemented by logistics facilities which include cool port, including tank containers and reefers. Tank containers business is container freight station and warehousing. part of this record with a sustainable growth we saw since 2011.
We spoke to Mr Mohammed Al Muallem, Senior Vice President & Managing director, DP World UAE Region to find out more.
As a leading port operator in the region, what are Jebel Ali has various of smart and automation initiatives. Our Q some of the trends you are seeing in regard to port’s community portal, Dubai Trade, facilitates the online service working with storage? I.e. particular requests, blends, providing customers an increased productivity, costs and benefit of demands, technology etc. reduced time. Currently Dubai Trade offers more than 750 services seamlessly 24/7, 365 days a year. Tank containers is not material for Jebel Ali, compared to the huge volume of containers we handle. In 2013 we delivered a record Advanced Gate Automation supported by radio frequency year with throughput reaching 13.6 million TEU. Tank container identification, container tracking to enable 20,000 truck operators through Jebel Ali is mainly for the local market. movements a day and 3G connectivity to enable shipping lines access bay and stowage plan information, helping them cut port We do have specific areas for tanker container storage, and those call time. areas were expanded with Terminal 2 and new dedicated areas will join them once the new container terminal 3 is open for business What key developments does DP World have this year. Q coming up? What are some of the challenges that a modern DP World always review market demand and the services and the Q port faces? capacity provided at Jebel Ali Port. One of the main challenges is the increasing of vessel’s size. We Expansion plans are underway and will add 6 berths and 4 million are well placed to invest today to meet the long-term needs of TEU capacity, bringing total handling capacity at Jebel Ali to 19 our customers requiring increased efficiencies and the capability million TEU before the end of 2014. Our customers and the whole to handle the increasing size of vessels requiring increased port supply chain in our region will benefit from the new most modern capacity to meet demand or dated infrastructure. This includes terminal 3, which will be the world’s largest semi-automated facilities to handle larger ships that cascade down to more minor facility, with 19 semi-automated quay cranes. routes as the next generation of ultra large container ships (ULCS) feature on major routes. As a direct response to feedback from our customers, we invested $850 million to build the new container terminal. This will Our investments are focused on ensuring that we have the right absolutely benefit our customers including customers involved in capacity and the right services to meet our customers’ needs today tanker container business. The new terminal 3 gives Jebel Ali Port and tomorrow to speed up our customers’ supply chains and bring 4 million TEU capacity as well as the ability to handle 10 mega goods more swiftly to market. vessels (ULCV) simultaneously.
7 www.tankworldnews.com Port Storage Development: A Global Outlook Port Profile: Amsterdam
As world’s largest gasoline port and second-largest coal port of Europe, Amsterdam is a leading player in the fossil energy market. With a unique location in Europe’s largest delta and close ties to the Amsterdam Metropolitan Port Details Area, the port of Amsterdam region offers a dynamic international logistic hub and environment. This strong position is the base for a thriving integration of renewable energy and biobased economy. Port of Amsterdam, the gateway • Capacity of tank storage: 6,3 mln cbm, mainly to Europe and an ideal investment location. Bulk Terminal Amsterdam (OBA) independent, with world players like Vopak, tranships and stores dry bulk and biomass. Oiltanking, VTTI, BP, Nustar
• Efficient and flexible operations
• All operations equipped with vapour recovery “In terms of logistics, Amsterdam is well-positioned units for transit to the hinterland via the Amsterdam Rhine • Market share HLH-range 18% in oil products Canal and to Great Britain by sea. We expect to receive between 0.5 million and 1 million tonnes of biomass a • Market leader in blending of gasoline year over the next four years.” • Direct connection via pipeline into Schiphol Hans Mattheijer, Sales department manager, OBA airport
Rising in renewable energy Enterprising in bio-based economy The port business community and Port of Amsterdam itself With its various successful renewable energy activities and clustering already possess an abundance of expertise and experience. of sustainable companies in the port area, Port of Amsterdam is It has an extensive, state-of-the-art infrastructure for the increasingly contributing to the transition to a bio-based economy. transhipment, processing, blending and storage of energy sources. This provides good business opportunities for companies (e.g. the Port of Amsterdam is rising in biomass, biofuels, biogas and off biochemical industry) to optimize their value chain in the port of shore wind. Amsterdam region. The port also stimulates and provides testing ground for innovative and sustainable initiatives. An enterprising Moreover Port of Amsterdam has one of the largest on shore wind ethos is the key to a successful transition to a bio-based economy. farms of the Netherlands. It also implements the policy that a large share of available plots is reserved for renewable energy. Amsterdam’s Waste and Energy Company (AEB) combusts sewage Altogether this puts Amsterdam in an excellent position to attract sludge from neighbouring company Waternet into biogas. This gas more companies in the renewable energy sector. Oiltanking is converted into green gas and used, among other purposes, to fuel Amsterdam provides biodiesel plant Vesta Biofuels with space on garbage trucks in West Amsterdam. The remaining sewage sludge its site. is added to AEB’s combustion process and converted into energy.
“They produce the biodiesel and we provide the “We aim to work as environmentally port facilities, such as jetties, tanks, storage and friendly as possible. It’s an excellent way transhipment facilities and blending. We also to make a sustainable contribution to provide these services to other customers.” companies in the area.” Peter van Wessel, Managing Director, Vesta Biofuels Kees van den Berge, Strategy and Re source Director, AEB
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8 www.tankworldnews.com Port Storage Development: A Global Outlook Port Profile: Amsterdam (cont.)
To find out more, we spoke to Lex De Ridder, Manager Commercial Unit Bulk, Containers and Logistics at Port of Amsterdam.
As a leading port in the region, what are some of the What are some of the challenges that a modern Q trends you are seeing in regard to working with Q port faces? storage? I.e. particular requests, blends, demands, Generally speaking, increase in the size of vessels is a challenge for technology etc. many ports and terminals alike in the ports around the world. The ARA is the most important hub in the world for products. The Port of Amsterdam caters for this development through increasing high level of knowledge, experience, efficiency and operational the size of the lock and board-board facilities to handle larger ships. excellence available in the area allows it to outperform its For ports operating in the SECA range, fuel transition in shipping is competitors today. The Amsterdam terminals as well as the Port to be taken into account. Inland vessels can already bunker LNG at authority constantly invest to improve on services and, flexibility to the Port of Amsterdam and the legal framework is set for seagoing stay competitive and be prepared for future growth. Amsterdam vessels to bunker LNG as well. Being a port closely located to a is still performing strong and has achieved an across the board city centre it is important to continue to be awarded our licence to growth of 6% on petroleum products in the first half of 2014. operate. In this light we are proud to say that our terminals are There is also a focus on compliance with legislation for safety furnished with the highest level of pollution mitigating equipment. and environment supports our aim to operate the business Year on year we achieve a reduction in pollution arising from the in a sustainable way. Plus the creation of space available and area whilst we have also achieved growth. stimulation for transition into production and storage of biofuels. What key developments does the Port of Amsterdam Q have coming up? Several, including the growth of LNG as bunker fuel, increasing size of the locks and the discharge facilities outside them, developing the world’s largest 2nd generation biodiesel plant and improving environmental monitoring by E-noses.
9 www.tankworldnews.com Port Storage Development: A Global Outlook DRIVE INBOUND MARKETING and lead generation with porttechnology.org
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SOHAR Port and Freezone is a deep sea port and free zone leading global partners that operate its container, dry bulk, liquid in the Middle East, situated in the Sultanate of Oman around and gas terminals including Hutchison Whampoa, C. Steinweg 200 kilometers northwest of its capital Muscat. With current Oman, Oiltanking Odfjell and Svitzer. SOHAR Port and Freezone is investments exceeding US $15 billion, it is one of the world’s managed by Sohar Industrial Port Company (SIPC), a joint venture largest port and free zone developments and lies at the centre of between the Port of Rotterdam and the Sultanate of Oman that global trade routes between Europe and Asia. SOHAR provides was established over a decade ago, in 2002. unequalled access to booming Gulf economies while avoiding the additional costs of passing through the Strait of Hormuz. In terms Dry bulk, which includes Vale, Jindal and Sohar Aluminium’s of services, SOHAR is currently home to logistics, petrochemicals imports and exports, sees throughput of 26 million tonnes per and metal clusters that feed downstream industries with iron annum (with 45 million tonne capacity), and 330,000 tonnes of and steel, plastics and rubber, ceramics and chemicals. The break bulk. Liquid bulk reached close to 17Mt, mainly through abundance of low-cost energy, raw materials and world-class oil related products handled by Oiltanking-Odfjell (container logistics support, coupled with SOHAR’s business incentives and throughput is currently 200,000 TEU, but will rise to 500,000 TEU One-Stop-Shop system for processing all Government clearances, after the move of commercial traffic from Muscat; container has also come to provide a significant advantage for business. capacity is 800,000 and will rise to 1.5m TEUin the coming years). Meanwhile, the existing road network and the future rail system This was one of the many reasons why SOHAR Port and Freezone and airport provide direct connectivity to the UAE and Saudi Arabia, earned a place in the TOP 100 world ports and saw the port win as well as to the rest of the world. Equipped with deep-water the 2013 Port Authority Award, highlighting its undisputable jetties capable of handling the world’s largest ships, SOHAR has position as Oman’s number one port.
We spoke to Edwin Lammers, Executive Commercial Director to find out more.
As a leading port in the region, what are some of the November 2013, will increase the refinery’s capacity from 120,000 Q trends you are seeing in regard to working with storage? to 180,000 barrels per day and feed into local industries. I.e. particular requests, blends, demands, technology etc. Another major development to emerge was an agreement with The storage market in Oman is and remains strong with double Oman International Container Terminal (OICT)* to relocate its digit increases last year looking set to be replicated again this year. operations and free up space for a new agro-bulk terminal and This is bucking the trend of Dubai, which saw a decrease. storage facility for a strategic national food reserve. The container terminal relocation was part of a US$130 million project, while the As an example, in recognition of SOHAR’s strategic position on motivation for the reserve came from a request from the Omani the tip of the Arabian Peninsula, Germany’s Oiltanking forged a governments as it looks to improve its food security. The national highly successful partnership with Norway’s Odfjell, to develop food reserve project is envisioned as a complex of silos for the niche market chemical tanks – smaller sized tanks on a risk storage of a variety of grain commodities, including wheat, rice, basis, just to make them available for trading activities. Oiltanking barley and other types of grain. Oman Flour Mills (OFM) has been is one of the world’s leading independent storage partners for selected by the government to operate the facility and will handle oils, while Odfjell is a leading company in the global market for government grains. It will also look into the potential handling of transporting and storing bulk liquid chemicals and acids. Together other agricultural products. It also plans to construct a modern – as Oiltanking Odfjell Terminals & Co. LLC – they have a capacity flour mill behind the silo complex, and, as operator, the company of 1,366,640 cbm. Elsewhere in the petrochemicals cluster, will be required to attract various types of commercial agro-bulk something that is very important for SOHAR Port and Freezone, cargos to SOHAR Port in order to achieve the economies of scale and for Oman as a whole, is the expansion ambitions of Oman necessary to bring down the costs associated with maintaining Oil Refineries & Petroleum Industries Co. (Orpic), which issued a the government reserve. The addition of an agro-bulk terminal tender for the construction of its SOHAR Refinery Improvement is important in that it deviates from the original clustering done Project (SRIP) last year. This project, which was awarded to a when the joint venture was first established between SOHAR and 50:50 joint venture between Petrofac and Daelim Industrial Co. in the Port of Rotterdam. continued...
11 www.tankworldnews.com Port Storage Development: A Global Outlook Port Profile: Sohar (cont.)
What are some of the challenges that a modern However, rail will be the big ‘game-changer’ for SOHAR Port and Q port faces? Freezone, and the port is currently working closely with the Omani rail authorities to ensure that rail connectivity benefits most, if not Like any business, there are always challenges. Over the past year, all of the tenants and service providers operating at SOHAR Port for example, a dry bulk-related project has not been successful. and Freezone. The first goal we are working towards is connecting This is something being constantly reviewed and will be vital in SOHAR to Al Ain and Abu Dhabi in the United Arab Emirates. Further redefining other strategies on the use of the port’s dry bulk jetty. expansion will also offer freighting options into Saudi Arabia, both of Despite this setback, it is expected that a new agro bulk operator which will ensure that SOHAR Port and Freezone becomes an integral will be engaged in order to assist in developing a specialised part of a truly multimodal transport infrastructure encompassing terminal. Rail connectivity is also a challenge given that the area road, rail, sea, and air transportation networks. that was never designed to carry rail infrastructure, which is causing a rethink rather than abandonment. Brazilian iron ore giant Vale’s 9mt pelletising plant and distribution centre, and OICT will be among the first to be connected, and What key developments does the Port of SOHAR Q the general cargo terminal of C. Steinweg Oman and the liquids have coming up? terminal Oiltanking Odfjell Terminal will be linked too. As an The biggest development coming up, and the focus of all efforts, alternative, goods may be transported by truck from these is the transfer of all commercial traffic from Port Sultan Qaboos – terminals to a rail centre in SOHAR Freezone where they will be with a deadline set for the end of August for companies to vacate freighted by rail from there. We would also like to see connectivity the Muscat port. This will see an additional 300,000 TEU make the with the future container terminal, deepwater jetty of Vale, and 200km move up the coast to SOHAR Port and Freezone, and will SOHAR Freezone customers. At the same time, SOHAR Airport take SOHAR’s container throughput to 500,000 TEU. In preparation is set to start the first test flights by the end of 2014. This will for this and as part of the US$130m expansion project (mentioned enable air transportation links that will cut delivery times, and also in the answer above), dredging increased SOHAR Port’s draught opens the way for the growth of a promising airfreight industry will to 18m, and in May this year, welcomed its first ever 10,000 TEU fully capitalise on SOHAR’s emergence as a manufacturing and container ship – the largest ship to call at either Sohar or Muscat. industrial hub.
12 www.tankworldnews.com Port Storage Development: A Global Outlook Port Profile: Zeeland Seaports
Zeeland Seaports, a European hub and gateway for handling Zeeland Seaports has various dedicated terminals for all cargo of liquid bulk in the Netherlands. The two ports Vlissingen and segments. Liquid bulk continues to play an important role in Terneuzen which make up the Zeeland Seaports are ideally the ports of Zeeland. That is apparent, among others, from the located, right between Rotterdam and Antwerp, with free access investments various companies like Vopak, Vesta Terminals, to the open sea and a first-rate network of road, rail, pipelines Oiltanking, Total and Lukoil have made in the liquid bulk sector and inland waterway links to the hinterland of Europe. Even the in recent times. Despite the adverse economic climate, they largest seagoing vessels are able to call Zeeland Seaports with a chose precisely this period to build on their future, Apart from the minimum of deviation from main shipping routes and without tidal storage and handling of petrochemical products, vegetable oils restrictions. In addition, the ports handle a wide range of short sea and fats, Zeeland Seaports also welcomed a new storage facility and inland vessels providing a comprehensive network of cargo for liquid fertilizers. services right across Europe. Whenever possible, the Zeeland Seaports port authority supports Flexibility, speed, quality and customer friendliness are other these new developments. The jetty capacity of Oil Tanking in the reasons for more and more companies to choose Zeeland port of Terneuzen has been extended substantially, to improve Seaports as their strongest link to Europe. With plenty of space for handling capacity and accommodate even larger ships. Zeeland development, Zeeland Seaports has ample opportunities for future Seaports is also investing in a sustainable future through Biopark growth. Zeeland Seaports and its experienced staff look forward to Terneuzen and Bio Base Europe, dedicated to the handling, helping customers develop and grow their business. production and development of biofuels and alternative energy.
I ask Peter Geertse, Commercial Manager Liquid Bulk of Zeeland Ports to give us some furhter insights. Peter started as commercial manager at Zeeland Seaports 6 years ago, after working in the shipping industry for 23 years. With extensive training in Commercial Economics, Port Management, Shipping and Transport. Responsibilities at Zeeland Seaports include Liquid bulk, Offshore, Energy, sustainability projects and Bio Based Economy.
What are some of the trends that you are seeing in Could you outline some of the challenges and Q the business of storage in Northwestern Europe? Q opportunities ahead? In Northwestern Europe we see a shift from refining and Our main challenge is to provide companies with sufficient production to logistics. While more production moves closer to (environmental) space, quay and jetty capacity, as there is more the source, the oil producing countries, there is an increasing and more demand to accommodate larger ships and benefit demand for storage, blending and distribution of finished products from economies of scale. Also European policy on Biofuels and in Europe. Biofuels and alternative fuels such as LNG and CNG are alternative energy has a huge impact on the market and new changing the market rapidly, asking for more variety of (smaller) investments. But then again, this is definitely the more exciting tanks and blending facilities, compared to traditional storage of part as well. With more and more variety of fuels and energy, the crude oil. Also sulphur content regulations in Europe requires market becomes more dynamic and the ports who are able to more added value services from tank terminal operators which adept will have a bright future. has an impact on the market.
13 www.tankworldnews.com Port Storage Development: A Global Outlook Port Profile: The Louisiana Offshore Oil Port (LOOP)
The Louisiana Offshore Oil Port (LOOP) is a deep-water port in the Gulf of Mexico off the coast of Louisiana near the town of Port Fourchon. As noted in our introduction, U.S. imports have declined Tank Storage in recent years but LOOP, still plays a key role in meeting those daily energy needs. LOOP has offloaded over eleven billion barrels of LOOP owns and operates a large, modern tank facility at Clovelly, foreign and domestically produced crude oil since its inception. We Louisiana. The LOOP tanks are 50 feet (15 meters) in height and 315 are the single largest point of entry for waterborne crude oil coming feet (95 meters) in diameter. Each tank holds up to 600,000 barrels into the U.S. of crude oil. Fifteen tanks are currently in service. There is room to build additional tanks of various sizes on adjacent tracts of land to LOOP receives and temporarily stores crude oil supplies from meet customer needs. three sources: • Tankers carrying foreign and domestic crude oil Above ground tanks make it possible to segregate specialty • Domestic crude oil produced in the Gulf of Mexico grades of crude oil for our customers. Customers with unique • The Houston to Houma (Ho-Ho) Pipeline moves domestic requirements can isolate their supplies and protect the quality crude produced in the U.S. and the Gulf of Mexico specifications of the crude oil being sent to refineries. The tanks have floating roofs and efficient “drain dry” bottoms, which allows LOOP was organized in 1972 as a Delaware corporation and them to be fully emptied and handle varying grades of crude oil. converted to a limited liability company in 1996. Marathon Pipe Line LLC, Valero Terminaling and Distribution Company, and Shell Oil Company are the owners of LOOP.
LOOP is the only port in the U.S. capable of offloading deep draft Cavern Storage tankers known as Ultra Large Crude Carriers (ULCC) and Very Large Crude Carriers (VLCC). Along with offloading crude from Oil delivered to LOOP is temporarily stored in the LOOP crude oil ULCCs and VLCCs, LOOP also offloads smaller tankers. storage facilities in Clovelly, Louisiana - the largest privately-owned crude oil storage facilities in the nation. The port consists of three single-point mooring buoys used for the offloading of crude tankers and a marine terminal LOOP operates eight underground caverns that have a total consisting of a two-level pumping platform and a three-level storage capacity of 58 million barrels. The man-made LOOP control platform. The onshore oil storage facility, the Clovelly storage caverns are cylindrically-shaped, vertical spaces that were facility twenty-five miles inland, is connected to the port hollowed out from a vast underground salt formation. While salt complex by a 48-inch diameter pipeline. The Clovelly facility dome storage is not an unfamiliar technology, the LOOP Clovelly provides interim storage for crude oil before it is delivered via Salt Dome facility is the only repository in the world continuously connecting pipelines to refineries on the Gulf Coast and in the receiving and distributing crude oil. Midwest. Oil is pumped into the caverns where it displaces brine, which is The oil is stored in eight underground caverns leached out of sent to an above ground brine storage reservoir and eventually a naturally occurring salt dome, which are capable of storing reused in the storage and distribution process. When brine is approximately 60 million barrels of crude oil (a barrel of oil pumped into the caverns, it displaces the crude oil into one of four is equal to 42 U.S. gallons). Since 1996, one cavern has been delivery pipelines. Because brine is heavier than crude oil, the oil dedicated to the Mars stream coming in from the deepwater sits atop the brine and no mixing occurs. The caverns are always Gulf of Mexico, which uses the same distribution system as full of brine and/or crude oil. foreign sources. The large capacity of the caverns allow customers to offload large Three pipelines connect the onshore storage facility to volumes of crude oil at one time and make deliveries to refineries refineries in Louisiana and along the Gulf Coast. LOOP also in batch sizes that meet their specific needs, freeing up valuable operates the 53-mile, 48-inch LOCAP pipeline that connects storage capacity at their refineries. LOOP to Capline at St. James, Louisiana. Capline is a 40-inch pipeline that transports crude oil to several Midwest refineries.
14 www.tankworldnews.com Port Storage Development: A Global Outlook “The show provides an excellent opportunity for industry leaders to exchange ideas on key fundamentals and to inspire innovation to growing market demands.” Yusr Sultan, CEO, Horizon Terminals Dubai World Trade Centre 14 – 15 April 2015 THE WHOLE VALUE CHAIN ATTENDS:
WHERE GLOBAL TANK STORAGE LEADERS 1670 103 total ports, terminals DO BUSINESS attendees and free zones
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The Middle East share of global oil trade is 367 242 higher than any other region at 36% Directors Oil gas and Value of pipeline contracts increased to and C-level chemical attendees companies £32,000 million in 2013
The value of projects across the Middle East region is in excess of £100 billion
Capacity at Fujairah Port is expected to rise to 10.6 billion tonnes by the SUPPORTERS INCLUDE: end of the year
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