terminal news
Odfjell predicts losses at Rotterdam terminal for 2013 Odfjell has reported an EBITDA of €17 million in the fourth quarter of 2012, a reflection of both a continued weak chemical tanker market and significant losses at Odfjell Terminals Rotterdam (OTR), it says. In a statement Odfjell revealed: ‘In the fourth quarter, with the exception of OTR the EBITDA of our tank terminals remained on par compared with the previous quarter. ‘EBITDA at OTR for the fourth quarter came in negative $9.8 million (€7.3 million) and we expect a slightly negative EBITDA also for the full year 2013. As stated in the third quarter report, total investments at the terminal for the next four years will amount to around
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$200-270 million, an increase of around 30% compared with the original investment plan. ‘OTR has reached agreements in principle with the unions and the Works Council with the objective of finalising the negotiations regarding downsizing and reorganisation of the work force. The re-commissioning project at OTR is slightly delayed relative to earlier plans. 717,000 m3 is approved for usage per end of January 2013. The remaining capacity will gradually be brought back into service in the coming months and it is expected that 1.2 million m3 will be ready by end of Q2 2013.’ Elsewhere, however, Odfjell says its terminal projects are progressing well. Works are continuing
at Charleston Terminal and is on course to become operational at the end of this year. In Nanjing, China the company says the marine infrastructure substructure is almost complete and the tank farm foundations are under construction. The overall project is now 30% complete and will be up and running by the beginning of next year. Additionally, the company predicts its previously announced LOI with Lindsey Goldberg will ‘increase the capitalisation of the tank terminal division and will enable us to jointly embark on an ambitious and accelerated growth strategy’. Expansion projects are also underway at its facility in Houston, Texas and at Le Havre in France. ‘We
are also seeing five growth opportunities in China totalling approximately 2 million m3 of new tank storage capacity,’ Odfjell adds. In Antwerp expansion works are progressing at Noord Natie Odfjell Terminals and a new contract will see the addition of 50,000m3 of storage capacity, bringing the terminal’s total storage capacity to 350,000m3. ‘Our main concerns relate to challenging markets also in 2013, high fuel costs and potential set back in the global economy,’ Odfjell says. ‘On the tank terminal side, we have witnessed higher activities and inquiries for storage. We expect improved earnings in our tank terminal division in the first quarter of 2013.’
March/April 2013 • TANK STORAGE