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Terminals, which has been earmarked as one of our growth focus areas.” Finalisation of the LoI and formation of a joint venture company are subject to final terms and conditions, including customary regulatory and shareholder approvals.
ROYAL VOPAK, WHICH operates the world’s largest network of independent bulk liquids storage terminals, has recently announced two developments that illustrate its current operational strategy, with both involving partnerships with third parties and focusing on linkages between tank capacity and industrial operations. Last month Vopak signed a Letter of Intent (LoI) with Chandra Asri Petrochemical, Indonesia’s largest integrated petrochemical company. The LoI anticipates the two companies collaborating to develop petrochemical infrastructure in Cilegon, a major industrial centre in Banten province, Indonesia. Cilegon, which lies at the north-western point of Java, on the Sunda Strait, is also known as ‘steel city’ as it is the focus of steel production for south-east Asia but it is also the home of
As part of their collaboration, Vopak and Chandra Asri will explore storage opportunities to help develop existing petrochemical value chains and help expand the chemical cluster. Erwin Ciputra, president and CEO of Chandra Asri, explains more: “We look forward to productive discussions with Vopak to jointly explore growing our existing jetty and tank farm operations, with two key strategic objectives: firstly to develop a new jetty and tank farm line of business to serve new third-party customers, and secondly to prepare for the investment and construction of the supporting infrastructure of our second petrochemical complex. We strongly believe in the growth potential of the petrochemical industry in Indonesia and this initiative marks another step forward in that direction to solidify our business scale and reach, to
GULF GROWTH News of the Indonesian project came shortly after Vopak formed a 50/50 joint venture with BlackRock’s Global Energy & Power Infrastructure Fund, Vopak Industrial Infrastructure Americas. The joint venture’s initial activity has been to acquire three major industrial terminals on the US Gulf Coast from Dow, a transaction that is expected to close before the end of the year. The facilities involved are located in Freeport, Texas (53 tanks, 140,000 m³), St Charles, Louisiana (73 tanks, 409,000 m³) and Plaquemine, Louisiana (30 tanks, 303,000 m³), offering a total storage capacity of 852,000 m³. The terminals primarily handle chemicals, although the Plaquemine site also stores refined products. Vopak Industrial Infrastructure Americas will enter into long-term service agreements with Dow, which expects Vopak’s expertise to provide additional operational efficiencies and opportunities for growth. “This unique expansion opportunity, in which we partner with the leading global investment experts of BlackRock, fits perfectly into Vopak’s growth strategy for industrial terminals,” says Vopak CEO Eelco Hoekstra. “We are very proud of our expertise and long track record of storing vital products with care for our customers and our drive to continue to invest.” Mark Florian, managing director of BlackRock’s Global Energy & Power Infrastructure team, adds: “This investment is aligned with our strategy to deliver value for our investors by investing in high-quality
a significant and developing petrochemical cluster. Vopak has an existing terminal nearby at Merak.
serve the needs of our customers and the domestic market.” Michiel Gilsing, president of Vopak’s Asia & Middle East division, adds: “We believe in the long-term growth potential of Indonesia and this potential collaboration will enable us to further invest in Indonesia in Industrial
and critical operating infrastructure assets that are supported by long-term contracts to provide cash flow visibility and partnering with industry leaders who are like-minded to help grow these businesses while maintaining a strong culture of safety.” www.vopak.com
ALL JOIN HANDS EXPANSION • VOPAK CONTINUES TO HONE ITS TERMINAL NETWORK, ANNOUNCING TWO INVESTMENTS IN PARNTERSHIP WITH PARTIES THAT CAN HELP SUPPORT ITS AMBITIONS
VOPAK’S LATEST MOVES ARE ALIGNED WITH ITS FOCUS ON INVESTING IN INDUSTRIAL TERMINALS
HCB MONTHLY | NOVEMBER 2020
