Tank News International: Autumn Edition - Intermodal Issue

Tank Storage & Logistics Autumn Edition 2016 TA N K N E W S I N T E R N AT I O N A L : TA N K S T O R A G E & L O G I S T I C S A U T U M N E D I T I O N

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2016

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International news on the tank storage and logistics industries

WORLDWIDE D E L I V E RY OF ENGINEERED TANK PRODUCTS

1 AUTUMN EDITION 2016

Dear Reader First and foremost, we would like to take the opportunity to thank you, our advertisers and general supporters, for the great response we received after launching our first ever print project a few months ago.

We received fantastic feedback and because of this, have decided to run another printed magazine for Tank News International for the last quarter of 2016.

A lot has happened since the last supplement; TNI has spread its wings even wider in the tank logistics industry and is now the official media partner for Argus Africa Storage and Logistics Conference, a Cape Town-based event taking place on 16-18 November that brings together the key global players in a connected storage and logistics community.

This is in addition to the new media partnerships with established industry events such as Expo PetroTrans, an international petroleum logistics trade fair that has more than 4000 visitors, and Intermodal Europe, which attracts 5000 attendees. We also have an the existing partnership with National Institute for Storage Tank Management (NISTM), an organisation that provides education around the management of storage tank systems.

The team at TNI prides itself on providing the most up-to-date news from all sectors of the tank logistics industry to the community on any device, worldwide. We wouldn’t be able to continue this breadth and depth of coverage without the continued support from our sponsors. We thank you all and appreciate your partnership.

We hope you enjoy the flavour of TNI that is captured within this print edition and hope you’ll visit us at www.tanknewsinternational.com to find even more insights. Until the next time, enjoy the ride that this global, intriguing and ever-changing industry provides to those who build, manage, and invest within it.

Jo Shorthouse Editor

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NTD Contractor for Welded and Bolted Storage Tanks

Above Ground Storage Tank Services for Welded and Bolted Tanks Atlas Tank, a TF Warren Company, has exceptional experience in the storage systems industry. As a single source solution contractor, we provide the highest level of safety, quality, and on-time performance in every aspect of a project.

API 650, 653, and AWWA Standards Atlas Tank offers tank construction, repair, and maintenance service to terminals and storage facilities. We are equipped with expert staff who utilize modernized programs, resources, shared services and equipment to ensure projects are completed with an emphasis on safe work practices, quality and schedule.

Serving the following industries: • • • • • •

Terminals/Pipeline Petroleum Refining Electric Power Renewable Energy Alternative Fuels Water and Wastewater • Metals and Minerals

We are a union contractor signatory to the NTD Boilermakers Agreement for both new construction and tank repair.

Atlas Tank 10559 Geiser Road Holland, OH 43528

419-865-4010 www.atlas-tank.com TA NK NE WSI NTE R N ATION A L .C OM

YOUR SINGLE SOURCE

SOLUTION www.tfwarren.com

3 AUTUMN EDITION 2016

The Intermodal Europe front cover is proudly sponsored by Seaco. www.seacoglobal.com

Greg Emmenis Publisher / Head of Sales +44 (0) 7877 003195 greg@tanknewsinternational.com

TankNewsInternational.com shares news covering the entire tank storage and transport markets and welcomes editorial submissions covering new product launches and enhancements, case studies, regulation changes, technical articles and company news.

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SIMPLY UNPARALLELED. The Grand Canyon, located in Arizona in the United States, is often considered one of the Seven Natural Wonders of the World. In 1903, after visiting the canyon, President Theodore Roosevelt, could not describe its unparalleled beauty. As one of the canyon’s greatest supporters, he simply urged individuals to experience it for themselves.

USA (Atlanta) 866-698-2732 USA (Houston) 281-498-9202 Europe (UK) 0800-044-5704 Asia Pacific (Australia) +61 3-8623-6400 Latin America (Argentina) +54 911-5988-1854

MEASUREMENT CONTROL AUTOMATION Varec.com

Measurement | Control | Automation | Enterprise | Integration | Support

5 AUTUMN EDITION 2016

Contents S TO R AG E T E R M I N A L S

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Vopak operates in Panama CST Covers streamlining production of OptiDome Magellan Midstream - New marine terminal South Africa terminal proposals Gazprom and Shell Russian LNG plant CB&I anno uncement SABIC and ExxonMobil consider joint venture Vopak reports on HY1 2016 TanQuid CEO resigns Tesoro to sell Alaska asset ExxonMobil to acquire InterOil NuStar up in Q2 BP annoucemences final investment decision Oiltanking GmbH acquisition Texas terminal expansion Talke Unipetrol contract Odfjell half year results Tank Connection annoucement Billing, automation and transparency TF Warren Group safety achievements Inter Pipeline buys Canada NGL Puma Energy opening 99th terminal EPP Planned expansion FMC and Technip merger Infrastructure proposals for the central region of Mexico

SHIPPING

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Ektank Orders Two Product & Chemical Tankers MR Tanker Time Charter Rates Under Pressure Delivery of Navigator Aurora LNG market needs more vessels Upcoming forum to look at range of issues Crowley takes delivery First LNG vessel through expanded Panama Canal Navig8 takes delivery

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Hoyer Group relies on Savvy portal Den Hartogh best employer nomination Crowley to deliver containerised LNG EXSIF launches new tank test approval website Hoover CEO on PESA board VTG Tanktainer investment Hoover, Ferguson and CHEP merger Odyssey Logistics & Technology Intermodal Asia 2017 - delivering a market outlook Joint venture with Aspen International Analysing the ITCO tank container survey Samskip named as award finalist Eurotainer grows fleet Supply chain contract signed

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Essar signs deal Thames Oilport announcement Abbey Logistics MBO Centurion Midstream Group acquisition Hoyer expands BP relationship TCL Tank Rental continues to grow Starkey tankers adds Magyar to fleet New events for the tank truck industry MFG’s second acquisition in a week Miller employee receives award Clugston Group CEO resigns Transportation and testing speed for fuel samples Emco Wheaton focus on Asia Pacific growth Rix Petroleum investment

RAIL

PORTS

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R OA D TA N K E R S

Yilport secures 50-year concession at Ecuador port First ship to buncker LNG at Rotterdam Khalifa port grows Louisiana Offshore Oil Port Services expansion Liverpool takes delivery Jurong Port launches Combi Terminal Another daily service from Port of Felixstowe Extended collaboration with Shell Napier Port announcement

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74 74 74 75 76 76 78 79 79

Greenbrier closes investment Patriot Rail Company appoints new VP LRIW now accepting nominations American Railcar Industries Q2 results Watco to Operate Sandusky, Ohio Terminal Wabtec acquires Gerken Group New direct intermodal rail service G&W Ethanol plans Faster timeline for phasing out DOT-111 tank cars

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AUTUMN EDITION 2016

Vopak operates in Panama Expected to start in Q3 2016

ROYAL VO PAK

Royal Vopak has reached a long-term agreement with Chevron to manage and operate for Chevron its existing 509,000m3 terminal in Panama. Chevron continues to be the owner of the terminal. Vopak’s operatorship is expected to start in Q3 2016.

Next to this agreement with Chevron, the key regulatory approvals have been obtained for the development of a first phase 360,000m3 independent oil terminal, owned by Vopak, at Bahia Las Minas at the same location. A long-term contract has already been

signed for part of this new capacity.

The project entails, in addition to the new tankage, complementary marine infrastructure, including jetties to handle ships of up to 80,000dwt. The construction will take approximately 24 months and will start when the associated local TA NK NE WSI NTE R N ATION A L .C OM

construction permits are obtained in the coming months.

The location in Bahia las Minas, Panama, is strategically situated at the crossroads of international trade and transportation routes for refined products. It is very well located to serve the international refined products markets in the Panama region, and to serve the expected increasing bunkering needs resulting from the expansion of the Panama Canal.

With its presence in Panama, Vopak strengthens its leading position at strategic locations along the major global shipping routes.

For more information, visit www.vopak.com

7 AUTUMN EDITION 2016

CST Covers streamlining production of OptiDome

CST Industries, a leading dome manufacturer, is in its second phase of streamlining manufacturing of the flush batten aluminum geodesic dome design, OptiDome.

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he first phase was rolled out to the marketplace earlier this year, with the second phase on schedule to be rolled out effective immediately to the US and Canada API markets. This rollout will include the API International market in mid-October.

The OptiDome aluminum dome incorporates a flush batten design with Double Web I-beams to meet API-650G,

Eurocode, Aluminum Association and International Building Code standards.

The design uses gasketed stainless steel fasteners and is available with non-exposed sealant at the nodes. The strengthened Double Web I-beam design along with the flush batten provides unmatched value designed to improve the operational performance of the dome in any application. After many

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successful installations across all major markets including, oil, gas, water, wastewater, and architectural, CST is now standardising the OptiDome design across all API projects.

CST manufactures the OptiDome exclusively in the US with manufacturing facilities in Conroe, Texas and Rincon, Georgia.

VP of CST Covers, John Delaney said: “We are extremely excited that we are now able to offer this advanced dome design as our standard product to the API market. OptiDome sets a new standard in design and aesthetics and allows us to provide our customers in this market with the high quality and reliability they have come to expect from CST Covers.”

VP of engineering for CST Industries, Greg Hentschel said: We are pleased to offer the OptiDome to the API market. OptiDome provides CST customers with unmatched performance and superior structural stability, functionality, and aesthetics to any current market offering.”

For more information, visit www.cstindustries.com

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AUTUMN EDITION 2016

Magellan Midstream to construct new Pasadena marine terminal

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agellan Midstream Partners has plans to build a $335m high-capacity marine terminal along the Houston Ship Channel in Pasadena, Texas to handle refined petroleum products, including various grades of gasoline and diesel fuel, and renewable fuels. The new terminal will be built on nearly 200 acres of recently-acquired land.

The firm initially plans to build approximately 1 million barrels of refined products and ethanol storage and a

“Demand for refined products export capabilities from the Gulf Coast continues to grow, and Magellan is well positioned to take advantage of these opportunities due to our extensive pipeline and terminals network.”

NEW PASADENA FACILITY COULD BE EXPANDED TO INCLUDE UP TO 10 MILLION BARRELS OF STORAGE

new marine dock capable of handling Panamax-sized ships or barges with up to a 40-foot draft. Magellan is also constructing a 36-inch pipeline between the partnership’s existing Galena Park, Texas terminal and this new Pasadena terminal to enhance connectivity and distribution options for both facilities.

In addition, the company is connecting its existing 18-inch Texas City-to-Pasadena pipeline to the new facility. Magellan is developing opportunities for additional connections to third-party refineries, pipelines and terminals within the Gulf Coast region.

Subject to receipt of necessary permits and regulatory approval, Magellan expects its new Pasadena terminal to be operational in early 2019.

CEO Michael Mears said: “Demand for refined products export capabilities from the Gulf Coast continues to grow, and Magellan is well-positioned to take advantage of these opportunities due to our extensive pipeline and terminals network. We are pleased to expand our marine storage capabilities to meet the strong industry demand for both domestic and international exports while solidifying our strategic position as a key provider of storage and transportation services in the Gulf Coast region.”

If warranted by additional demand, the new Pasadena facility could be expanded to include up to 10 million barrels of storage and up to five docks, including the potential for Aframax-sized vessels with a draft up to 45 feet.

For more information, visit www.magellanlp.com

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South Africa terminal

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outh Africa has issued a request for proposals to design, finance, build and operate a liquid bulk terminal to handle petroleum products at the country’s biggest port, Durban.

The state-owned rail and ports operator, Transneft SOC, posted a tender document outlining the requirements for the 25-year concession, one of which being the successful bidder must be 51% owned by black citizens. Bid must be submitted by January 27, 2017.

In the bid documents it notes that the average growth in petrol consumption is expected to grow by approximately 1.2% per annum to 2044, while average diesel growth is anticipated to grow by 5%. Jet fuel average growth is expected to grow by around 2.3% to 2044. The demand includes South Africa, Botswana, Lesotho, Namibia, Swaziland and exports to markets in Southern Africa.

For more information visit, www.etenders.gov.za

Gazprom and Shell Russian LNG plant It has been reported that Russian energy company Gazprom and Shell have signed a memorandum of understanding to build an LNG plant on the Russian coast of the Baltic Sea. The MOU signed means the companies will look at the possibility of building the LNG plant in the port of Ust-Luga with an annual capacity of 10 million tonnes.

Gazprom has reportedly said that the Baltic LNG plant could produce up

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to 20 million tonnes of frozen gas per year. Shell has partnered with Gazprom before, on Russia’s only other LNG plant located on the Pacific island of Sakhalin.

For more information, visit www.gazprom.com and www.shell.com

11 AUTUMN EDITION 2016

CB&I announcement

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B&I has announced Chevron Lummus Global, a joint venture between CB&I and Chevron, has been awarded a contract by Beowulf Energy Sweden for the technology license and development of a residue upgrading complex in Lysekil, Sweden.

The scope of the contract includes the license of Chevron Lummus Global’s LC-Slurry® technology with integrated ISOCRACKING® and ancillary units.

Under the agreement, CB&I also will develop a detailed cost estimate and execution plan for the engineering, procurement and construction phase of the project.

For more information, visit www.cbi.com

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SABIC AND EXXONMOBIL

SABIC and ExxonMobil consider JV

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ABIC and an affiliate of ExxonMobil Corporation are considering the potential development of a jointly owned petrochemical complex on the US Gulf Coast. If developed, the project would be located in Texas or Louisiana near natural gas feedstock and include a world-scale steam cracker and derivative units. Before making final investment decisions, the companies will conduct necessary studies and work with state and local officials to help identify a potential site with adequate infrastructure access.

“We are focused on geographic diversification to supply new markets,” said Yousef Abdullah Al-Benyan, SABIC vice-chairman and CEO. “The proposed venture would capture competitive feedstock and reinforce SABIC’s strong position in the value chain,” he added. Neil Chapman, president of ExxonMobil Chemical Company, said: “We have the capability to design a project with a unique set of attributes that would make it competitive globally. That is vitally important as most of the chemical demand growth in the next several decades is anticipated to come from developing economies.”

ExxonMobil and SABIC have worked together for 35 years in major chemical joint ventures in Saudi Arabia.

For more information, visit www.sabic.com

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AUTUMN EDITION 2016

Vopak reports on HY1 2016

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he company has increased EBITDA by 3% to €421m, which is credits to higher occupancy rates. Net profit attributable to holders of ordinary shares increased by 7%. to €174m with gross operating cash flows decreased by 3% to €374m. Vopak divested its UK activities and its Japan terminals and consequently its worldwide storage capacity on a 100% basis decreased by 0.7 million cbm3 to 33.6 million cbm compared to year-end 2015.

CEO of the executive board of Royal Vopak, Eelco Hoekstra said: “During the first half of our 400th anniversary year, we improved our safety performance thanks to the continued commitment and efforts of our employees. We were also able to deliver solid financial results owing to a continuation of healthy occupancy rates and robust EBITDA margins. This supports positive cash flow developments and a strong balance sheet, providing sufficient flexibility for funding our capital disciplined growth ambitions.

We see that the growing imbalances of refined petroleum products are further impacted by global developments such as liberalisations in markets like Mexico and Indonesia, China’s transition towards

a service-driven economy, and the gradual return of Iran onto the world energy market. Growing population, urbanisation and increasing wealth levels drive demand in end markets. Therefore, we expect demand for chemicals to grow in the long term, particularly in Asia.

Global LNG market conditions continue to be challenging due to an intensifying oversupply, extending the trend in the market towards more LNG trading and volume flexibility.

Vopak continues to diligently assess the changing energy landscape. In line with the key messages set out during our capital markets update in 2016, there will be a step-by-step increasing need for better and more storage infrastructure.

We maintain our focus on seizing new opportunities in order to further strengthen our leading position in an agile industry. This is also supported by recently commissioned terminals, such as the independent LPG facility in Singapore, as well as recently announced projects like our new operations in Panama and the intention to expand Vopak Terminal Deer Park in Houston with 130,000cbm3 for chemical storage”.

TanQuid CEO resigns

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fter successful completion of the recent refinancing, the long-time CEO and CFO Jens Moir has left the tank storage company TanQuid.

Effective as of July 26 TanQuid CSO/COO Thomas Schröder and CAO Sebastian van der Ploeg remain in place as the core management team. In order for Thomas Schröder to continue to fully focus on clients and their needs as well the continuing development of the sites, Sebastian van der Ploeg will be taking over the role of the CEO on an interim basis and will therefore be responsible for finance, IT as well as HR/business affairs. Thomas Schröder remains responsible for sales, engineering, HSSEQ and tank storage sites.

Thomas Schröder and Sebastian van der Ploeg are aware of the many changes that have taken place within TanQuid in the last two years and “how these changes have left their mark both inside and outside the company”. This is why the short-term focus of the management will be to ensure that customer and employee relationships are managed appropriately.

Van der Ploeg said:

For full details, visit www.vopak.com

“We want to continue to position ourselves, with our customers based on TanQuid´s longstanding history and maintain company-specific values for the future. We are well positioned to do so, counting on the support and teamwork of our experienced and highly accredited employees within the branch.”

For more information, visit www.tanquid.com

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14 AUTUMN EDITION 2016

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Tesoro to sell Alaska asset

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esoro has agreed with the State of Alaska Attorney General to offer for divestment approximately 25% of its existing Tesoro Logistics Anchorage product terminal capacity (approximately 830,000 barrels in total), in order to complete the current FHR acquisition in a timely manner, to avoid state-initiated antitrust action generated by its latest buy.

The company has agreed to a consent decree with the state of Alaska the day after it closed the acquisition of oil terminals previously owned by Flint Hills Resources Alaska. It is thought that this

action will bring back balance after Tesoro agreed to the purchase last year.

Alaska Attorney General Craig Richards and Tesoro agreed that the company would sell another one of its petroleum fuel terminals at the Port of Anchorage to preserve competition in Alaskan fuel markets.

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Flint Hill purchase includes: all FHR wholesale fuel marketing contracts in Alaska; an Anchorage terminal with 580,000 barrels of total in-service storage capacity, a truck rack, and rail loading capability; a Fairbanks airport terminal that includes 22,500 barrels of in-service jet fuel storage and truck rack; and a multi-year terminalling agreement at FHR’s North Pole terminal, which will provide efficient rail offload capabilities and provide Tesoro access to Alaska’s Interior.

The former FHR North Pole refinery is not part of this acquisition.

For more information, visit www.tsocorp.com

15 AUTUMN EDITION 2016

The Tank Storage industry’s first and only products & profiles APP

NuStar up in Q2

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ExxonMobil to acquire InterOil in transaction worth more than $2.5bn ExxonMobil Corporation and InterOil Corporation have announced an agreed transaction worth more than $2.5bn, under which ExxonMobil will acquire all of the outstanding shares of InterOil. “This agreement will enable ExxonMobil to create value for the shareholders of both companies and the people of Papua New Guinea,” said Rex W. Tillerson, chairman and CEO of ExxonMobil Corporation. “InterOil’s resources will enhance ExxonMobil’s already successful business in Papua New Guinea and bolster the company’s strong position in liquefied natural gas,” he added.

InterOil chairman Chris Finlayson said: “Our board of directors thoroughly reviewed the ExxonMobil transaction and concluded that it delivers superior value to InterOil shareholders. They will also benefit from their interest in ExxonMobil’s diverse asset base and dividend stream.”

For more information, visit www.exxonmobil.com

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uStar Energy’s second quarter 2016 quarterly earnings exceeded consensus estimates and surpassed the partnership’s guidance expectations. The partnership reported net income of $40m for Q2 and $84.8m for the six months ended June 30, 2016.

Second quarter 2016 earnings before tax from continuing operations were $144.7m. For the six months ended June 30, 2016, the partnership reported $292.2m of EBITDA from continuing operations.

“Strong refined product pipeline throughput volumes, the benefit from 1.1 million barrels of storage leased at our Piney Point, Maryland facility, along with lower than expected operating expenses, contributed to our better than expected second quarter results,” said Brad Barron, president and CEO of NuStar Energy.

“What’s more significant is that we were able to report these solid results despite throughput revenues only slightly above contract minimums on our South Texas Crude Oil Pipeline System.”

Barron went on to say, “As you can see, we have the right assets to withstand this current downturn in the crude markets and we remain on track to cover the distribution for the full-year due to the continued strength of our core, diversified fee-based operations.”

For more information, visit www.nustarenergy.com

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AUTUMN EDITION 2016

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BP announces final investment decision to expand Indonesia’s Tangguh LNG facility BP has approved the investment in the development of the Tangguh Expansion Project in the Papua Barat Province of Indonesia. “The Tangguh Expansion Project demonstrates BP and its partners’ continued confidence in Indonesia and our commitment to work closely with the government to meet the country’s energy needs, while creating thousands of jobs,” said Bob Dudley, BP Group CEO.

he Tangguh Expansion Project will add a third LNG process train (Train 3) and 3.8 million tons per annum (mtpa) of production capacity to the existing facility, bringing total plant capacity to 11.4 mtpa.

The project also includes two offshore platforms, 13 new production wells, an expanded LNG loading facility, and supporting infrastructure.

The project will play an important role in supporting Indonesia’s growing energy demand, with 75% of the Train 3 annual LNG production sold to the Indonesian state electricity company PT. PLN (Persero). The remaining volumes are under contract to Kansai Electric Power Company in Japan, the other foundation buyer for Train 3.

The expansion will also bring a positive contribution to Indonesia and the Papua Barat Province starting in 2016, supporting economic growth and providing 10,000 valuable jobs spread over the project period.

Tangguh is currently making positive local social and economic impacts through its comprehensive community development programmes and providing much needed electricity for the Teluk Bintuni Regency. Train 3 will enhance this with a portion of the gas committed for the electrification of Papua Barat, and further development of Tangguh’s Papuan workforce to meet the 85% Papuan skilled workforce commitment by 2029.

Commenting on the decision, Christina Verchere, BP regional president, Asia Pacific said, “This final investment decision marks the culmination of many years of hard work by BP, our partners, and the Indonesian government. We are pleased to reach this major milestone and look forward to continued cooperation as we progress the largest upstream project in the eastern part of Indonesia.”

This FID decision follows the government of Indonesia’s approval of the Plan of Development II in late 2012.

Awards for the project’s key engineering, procurement and construction (EPC) contracts are expected in the third quarter of 2016 with construction to begin thereafter. Operation is expected in 2020.

For more information, visit www.bp.com

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THE HISTORY OF

347 AD FIRST OIL WELLS DRILLED IN CHINA

OIL & GAS

1850 FIRST COMMERCIAL OIL TANKER EXPLOSION

1859

PENNSYLVANIA OIL RUSH

1885 FIRST GASOLINE POWERED CAR, INVENTED

BY KARL BENZ

1901

THE TEXAS OIL BOOM

1984

LIGHTNING MASTER IS FOUNDED

1988

THE INFAMOUS PIPER ALPHA PLATFORM FIRE

2008

NORTH DAKOTA OIL BOOM

2012

LIGHTNING MASTER DEVELOPS MAGS

MAGS® BYPASS CONDUCTORS Lightning protection for external floating roof tanks has been the subject of much discussion in recent years, and the American Petroleum Institute, through API 545, Lightning Protection for Hydrocarbon Storage Tanks, has recently devoted much time and study to this subject.

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lightningmaster.com

• • • • • • •

ATEX Certified, CE marked Best available technology – meets API 545 Safe insulated conductor – rated for extreme climates Reliable – gravity powered design Low Maintenance – nothing to break Global install base – systems sold across 5 continents Patented

Lightning Master® is a full service, full spectrum static solutions, lightning and transient protection company serving the oil, gas and chemical industries since 1984.

18 AUTUMN EDITION 2016

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Oiltanking acquires 100% shares in Antwerp Gas Terminal STRENGTHENING LEADING POSITION

Oiltanking has bought Antwerp Gas Terminal, one of Europe’s largest independent LPG and petrochemical gas terminals.

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n a globalised world, the requirements for energy and feedstocks are changing.

Oiltanking therefore aims to further diversify its storage portfolio. The company firmly believes that this strategic acquisition will strengthen its leading position as a provider of tailor-made tank storage services.

As part of the acquisition, Oiltanking will focus on further expanding the

terminal, in the process combining the long years of operational experience and professionalism of both organisations.

The Antwerp Gas Terminal is located in one of Europe’s largest harbours, the Port of Antwerp, which connects the site with the most important chemical and petrochemical clusters while also providing direct access to the North Sea. The terminal, with an existing capacity of 138,400 cbm3, offers storage, TA NK NE WSI NTE R N ATION A L .C OM

throughput and distribution services for both pressurised and refrigerated LPG and petrochemical gases. The terminal has ideal logistical links: it provides deep water access (that can be further deepened), as well as pipeline, waterway, rail and road connectivity.

The site complies with the highest quality and safety standards.

For more information, visit www.oiltanking.com and www.marquard-bahls.com

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20 S TO R AG E T E R M I N A L S

AUTUMN EDITION 2016

50/50

JOINT VENTURE

Green Plains and Jefferson Gulf Coast Energy Partners Texas Terminal Expansion Green Plains and Jefferson Gulf Coast Energy Partners have formed a joint venture to construct and operate an intermodal export and import fuels terminal at Jefferson’s existing Beaumont terminal in Texas.

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he 50/50 joint venture is expected to invest approximately $55m in its Phase I development which will initially focus on storage and throughput capabilities for multiple grades of ethanol. Further development of the joint venture’s capabilities is expected to add the ability to manage multiple liquid products for import and export, including liquid hydrocarbons, vegetable oils and other non-liquid commodities.

“We are excited to be partnering with one of the largest ethanol producers and traders in North America. This project will add the necessary infrastructure at Jefferson Beaumont to distribute ethanol to markets worldwide,” said Greg Binion, president and CEO of Jefferson. “Green Plains Trade Group will be the anchor customer of the joint venture, and the terminal is expected to serve other ethanol exporters as well. We are confident that Jefferson’s multimodal capabilities and

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sustainable cost-advantaged logistics will contribute to the success of this joint venture.”

The joint venture’s terminal will have direct access to multiple transportation options including Aframax vessels, inland and coastwise barges, trucks, and unit trains with direct mainline service from the Union Pacific, BNSF and KCS railroads. Phase I development will leverage existing infrastructure at the Jefferson terminal in Beaumont, and is expected to include approximately 500,000 barrels of storage with expansion potential of up to 1,000,000 barrels.

Construction of Phase I is currently expected to take approximately nine months with completion projected in the second quarter of 2017.

“This joint venture will diversify the existing facility and complement the public/private partnership Jefferson enjoys with the Port of Beaumont. We expect it to be one of the most versatile ethanol hubs in the country and deliver additional economic benefit to the area,” said Chris Fisher, port director and CEO of the Port of Beaumont.

Green Plains may offer its interest in the joint venture to its master limited partnership, Green Plains Partners once commercial development is completed.

The terminal is located on 243 acres positioned in one of the largest refinery markets in the US, located in the centre of the 9.2 million bbd Gulf Coast refining market (PAD III). The terminal is a public-private partnership between the Port of Beaumont Navigation District of Jefferson County, Texas and Jefferson Energy Companies. It is the fourth busiest port in the United States, according to the US Army Corp of Engineers tonnage statistics, and the busiest military port in the US. The terminal is currently served by three Class I railroad carriers, allowing delivery from most origination terminals and plants in North America.

For more information, visit www.portofbeaumont.com

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22 S TO R AG E T E R M I N A L S

AUTUMN EDITION 2016

Unipetrol awards Talke Litvinov contract INVESTMENT IN CZECH PETROCHECMICAL INDUSTRY

The Czech petrochemical corporation Unipetrol, a subsidiary of Polish ORLEN group, has awarded TALKE a contract for the engineering and construction of a logistics facility at its location in Litvinov.

The value of the signed agreement amounts to 700 million CZK (€26m).

The contract is part of new polyethylene unit project (PE3), the biggest investment in the history of the Czech petrochemical industry.

“The investment into new polyethylene unit will help to contribute to greater integration of the petrochemical and refining production of Unipetrol Group and will enable us to reach out for new industrial segments, including cosmetic or packaging industry. It will increase our storage needs for polyethylene granules, so to ensure efficient storage and expedition of additional polyethylene volume produced by the new PE3 unit we decided to build new modern

logistics terminal at the Litvinov chemical site,” said Unipetrol CEO Marek Switajewski.

Unipetrol named TALKE as general contractor for the construction of a logistics facility to handle and package an annual volume of 270,000 tons of polyethylene type HDPE granules. The project includes the construction of a battery of 40 storage silos with a total capacity of 16,000 tons, the extension of an existing packaging hall, the installation of suitable machinery for bag filling, pallet packaging and truck loading.

Also, the pneumatic conveying system for the transfer of product from the production site to the storage silos as well as new offices, cloakrooms and social facilities for the new logistics terminal are subject to the contract.

TA NK NE WSI NTE R N ATION A L .C OM

The entire concept of the logistics facility originates from a study previously executed by TALKE. It will be realised under an engineering, procurement and construction (EPC) contract with completion planned for the first quarter of 2018. The new polyethylene unit is being built under INEOS license. Its construction commenced at the beginning of June 2016.

For more information, visit www.talke.com

The biggest investment in the history of the Czech petrochemical industry.

23 AUTUMN EDITION 2016

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O D FJ E L L H A L F Y E A R R E S U LT S

Odfjell, still going steady in challenging markets Odfjell saw an EBITDA of $61m and a net result of $16m in second quarter of 2016 compared to $69m and $24m in the first quarter of 2016.

This saw the first half of the year ending at $129m compared to first half 2015 at $88m. CEO of Odfjell SE, Kristian Mørch said: “Our markets are currently challenging, but we are pleased to see that the increased competitiveness of Odfjell means that we continue to generate positive results.”

The chemical tanker spot market was softer this quarter, however, use remained high due to stable contract nominations and agility.

EBITDA for the Chemical Tanker segment was $48m in second quarter compared to $56m in the first quarter of

2016. The firm has signed a Letter of Intent with a reputable state-owned Chinese shipyard for construction of a series of four firm stainless steel super segregators. A final contract is expected to be signed in 2H 2016. The capital commitments will be around $240m.

Odfjell’s shareholding in the Tank Terminal segment delivered stable results.

EBITDA of $12.1m in the second quarter, basically flat from $11.9m in the previous quarter of 2016. The occupancy rate of commercially available capacity was 97%, compared to 98% last quarter.

For full details visit , www.odfjell.com

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24 S TO R AG E T E R M I N A L S

AUTUMN EDITION 2016

Tank Connection announces new glass coating line expansion Tank Connection, headquartered in Parsons, Kansas, announces expansion plans at its Galesburg, Kansas manufacturing location.

Vitreous enamel (glass/porcelain) coating line equipment is being added to this facility.

This line will produce bolted glass panels coated with AQUA AGT 2020™, a high performance, proprietary glass coating system that addresses the deficiencies in today’s glass coatings. Glass and LIQ Fusion 7000 FBE™ coatings are commonly requested in municipal water and wastewater storage applications.

Tank Connection currently maintains the top two fusion powder coating lines for the application of fusion bond epoxy powder coatings.

Their proprietary coating formulation was developed by Akzo Nobel, the largest powder coat supplier in the world, and is exclusively provided only

by Tank Connection. Each coating line runs over twice the length of a football field and are located at the Parsons and Galesburg, Kansas facilities.

According to Shane Nash, Tank Connection vice-president of Operations, “The addition of the glass coating line is complementary to our fusion coating lines and

represents another big opportunity for Tank Connection. We have reviewed and conducted testing on glass coatings over the years and have not been satisfied with the performance of glass in water storage applications. By teaming up with the recognised industry experts in porcelain enamels, we have now addressed these deficiencies with a glass panel product that will fulfill client expectations.”

In 2015, Tank Connection partnered with Porcelain Industries for R&D testing on glass formulations. Porcelain Industries has been in business for over 60 years and is the largest independent enameler in the US Dr. Hemant Dandekar is the president and CEO of Porcelain Industries. He also serves on the board of the Porcelain Enamel Institute and has previously been the Chair of the American Institute of Chemical Engineers – Chicago section. According to Tank Connection board chairman, Bill Neighbors, “We have followed the same equation for all of the innovations in storage tank products that we have developed over the last decade.

In this case, we have taken the best in bolted tank design and coated it with a high performance glass coating system. As an employee owned company, Tank Connection will only offer the best american made storage tank products that are manufactured at Tank Connection facilities. Relative to glass, our focus was on addressing the deficiencies of today’s glass coatings in water storage applications. The glass coating system developed by Porcelain Industries addresses these deficiencies with its formulation, two coat and two fire process. In today’s market, customers deserve choices in their selection of storage tank products.

At Tank Connection, we continue to advance that selection with products of unmatched quality and field performance. This line expansion will now allow us to offer our bolted tank design coated with LIQ Fusion 7000 FBE™ (fusion bond epoxy), AQUA AGT 2020™ (glass/vitreous enamel) and in 304 and 316 stainless steel construction.”

Founded in 2003, Tank Connection has developed a reputation for successfully providing customers with products and capabilities for dry bulk and liquid storage applications.

Complementary to their bolted tank product line, Tank Connection also offers field-welded tank construction, aluminum geodesic dome covers and elevated water tanks. Tank Connection’s business model is to cover storage applications from A to Z with the best, most innovative storage tank products available in the global market today.

For more information, visit www.tankconnection.com

TA NK NE WSI NTE R N ATION A L .C OM

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26 S TO R AG E T E R M I N A L S

AUTUMN EDITION 2016

Billing, automation and transparency

W

hen service station operator MTV Förster decided to carry out a wholesale modernisation of its IT systems a new SAP-based service station solution was being developed by oil and gas software specialists Implico. The two firm decided to work together and Implico was able to a tailor-make solution for MTV Förster.

Following the successful project SAP Retail Fuel Network Operations (SAP RFNO) was born – a package that redefines digital service station management.

MTV Förster operates 28 service stations and carwashes in Germany, managing a further 18 under FTB Freie Tankstellenbetriebe and is a shareholder in a federal motorway service station.

Data collection and classification: a service station network challenge “The sheer variety of our business relationships is our biggest challenge,” explained MTV Förster’s CEO, Lars Ebert.

“At the close of each working day, we need figures for sales, revenue and profit margins, separate figures for shop revenue, figures for earnings from card issuer clearing houses, figures for the amounts payable by service station lessees, figures

for the amounts we owe our fuel suppliers and figures for the various commissions payable to and from the various parties.

And all down to the last cent,” he added Since the diversity of these day-to-day transactions meant the company was approaching the limits of its former systems and a manual analysis and documentation process, it decided to look for a new, efficient IT solution.

Implico impressed with its industry expertise With Implico, MTV Förster’s selected a firm with years of hands-on experience who developed an SAP RFNO. The two firms quickly identified a range of common ground. Lars said: “We were looking for a partner who could offer us an integrated system for all of our business processes, since we needed to replace our silo solutions.” The new solution also had to have an interface to WEAT – the network operator who collects and consolidates point-of-sale data for MTV Förster. Both of these requirements were already part of the functional specifications for Implico’s solution.

Win-win: a successful pilot project In a series of workshops, the partners analysed and documented all of the

processes in the service station network.

The workshop outcomes impressed MTV Förster as it modeled the company’s operations as a single, integrated system. At its heart is the new, jointly-developed SAP RFNO solution for service station billing, fuel inventory management and end-to-end customer/fleet card management. All of the operational business processes are managed using SAP ERP, while fuel orders are handled by the sales and logistics component SAP Secondary Distribution Management for Oil & Gas (SAP SDM), which was also developed

by Implico. This latter component also provides an interface for all incoming POS data from WEAT.

Automated billing throughout the system Since go-live, SAP RFNO has been logging every POS receipt at MTV Förster. The system automatically identifies payments and payment types for products and services, and assigns each to business partners. At the close of day, the MTV Förster team now receives the necessary billing documents automatically. Also included is a special service for the service station partner: the daily info sheet that informs the team about all of the sales, commission and card revenue logged, as well as the franchising fee to be paid.

Lard said: “This saves us the accounting work that was required previously by the system of monthly lessee fee advance payments plus a subsequent final invoice.” In addition, SAP RFNO offers interfaces to the company’s banks, pulling account and payment data into the system automatically.

For more information on this new and innovative system visit www.implico.com

TA NK NE WSI NTE R N ATION A L .C OM

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28 S TO R AG E T E R M I N A L S

AUTUMN EDITION 2016

TF Warren Group safety achievements TF Warren Group management has congratulated a group of companies within its family that have received Safety Awards from the Steel Tank Institute (STI) and the Steel Plate Fabricators Alliance (SPFA) for 2015.

The STI Safety Award of Excellence has been awarded to: Tarsco Inc. (Canada), who have achieved 33 months with no recordable injuries; Tarsco (US) who have reached 25 months with no recordable injuries and Blastco Inc., who have reached 35 months with no recordable injuries.

The Safety Award of Achievement has been presented to Brant Corrosion Control, who

achieved an 84% reduction in total recordable incident rate (TRIR); Brant Industrial Roll (Canada) achieved a 44% reduction in TRIR; Blastech (Canada) wowed with a 92% reduction in TRIR and the TF Warren Group recorded a 66% reduction in TRIR. A TF Warren representative said: “We congratulate you all on an outstanding safety record for 2015.”

The Steel Tank Institute (STI) and the Steel Plate Fabricators Alliance is a trade association representing fabricators of steel construction products and their suppliers.

Member companies produce steel storage tanks, field erected water tanks, pressure vessels and heat exchangers, and pipe and pipelines. Their customers are from the petrochemical, power generation, food, pharmaceutical, fuels, wastewater and water transmission industries.

For more information, visit www.steeltank.com and www.tfwarren.com

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29 AUTUMN EDITION 2016

Inter Pipeline acquisition

I

nter Pipeline is to buy The Williams Companies and Williams Partners’s Canadian natural gas liquids midstream businesses for $1.35bn.

Williams Canada pioneered the process of extracting NGL and olefins from offgas, a byproduct of bitumen upgrading operations. Williams Canada’s assets include two liquids extraction plants located near Fort McMurray, Alberta, a fractionator near Redwater, Alberta and a pipeline system that connects these facilities. The two extraction plants have the capacity to recover approximately 40,000 barrels per day of NGL and olefins from the upgrader offgas. The liquids mix is then separated into marketable products at the Redwater fractionator and

sold across North America.

As a result of this acquisition, Inter Pipeline also assumes responsibility for the potential construction of a $1.85bn Propane Dehydrogenation facility located near the Redwater fractionator. This facility would convert low-cost, locally sourced propane into high value polymer grade propylene, an important petrochemical product largely used in plastics manufacturing.

“This accretive acquisition is a highly complementary addition to our existing NGL extraction business,” said Christian Bayle, Inter Pipeline’s CEO. “Consistent with our disciplined acquisition strategy, we are purchasing this unique and attractive business at a low period in the commodity cycle, and well below original cost. This positions Inter Pipeline to significantly benefit as energy prices strengthen.”

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S TO R AG E T E R M I N A L S

The transaction is expected to close in the third quarter of 2016 and is subject to approval under the Competition Act and other customary closing conditions.

For more information, visit www.interpipeline.com

30 S TO R AG E T E R M I N A L S

AUTUMN EDITION 2016

EPP natural gas processing facility

FMC and Technip merger one step closer

nterprise Products Partners plans to build a new cryogenic natural gas processing facility and associated natural gas and natural gas liquids pipeline infrastructure to facilitate continued growth of NGL-rich natural gas production in the Delaware Basin of West Texas and southeastern New Mexico.

The site for the new processing plant, which will have a capacity of 300 million ft3 per day and the capability to extract more than 40,000 barrels per day of NGL, has yet to be determined. The project is anchored by long-term commitments from a major producer. The facility is expected to begin service in the second quarter of 2018.

“This project, which complements our ongoing growth in the region, is the third cryogenic natural gas processing

echnip and FMC Technologies have moved a step closer to merging. The two firms have executed a Business Combination Agreement following the conclusion of the required work council consultation process in Europe.

Technip chairman and chief executive officer, who will serve as executive chairman of the combined company, TechnipFMC, Thierry Pilenko said: “With the signing of the BCA, we have reached an important milestone paving the way to building a unique offering, driving change by redefining the production and transformation in the oil and gas industry.”

President and chief operating officer of FMC Technologies, who will serve as the CEO of TechnipFMC, Doug Pferdehirt said: “The combination of FMC Technologies and Technip is an exciting opportunity for both companies to shape the future of the oil and gas industry by accelerating technology innovation, integrating and improving project execution and reducing costs for customers. Having concluded the consultation process so quickly is a testament to the logic and strategic rationale of this merger.”

E

plant Enterprise has announced in less than 24 months,” said A.J Teague, CEO of Enterprise’s general partner. “The South Eddy facility began operations earlier this year, while our joint venture processing plant at Waha is expected to begin service in the third quarter of 2016. Altogether, these initiatives are expected to increase our processing capacity in the Delaware Basin to 800 MMcf/d, compared to 40 MMcf/d in 2012.”

The project will include construction of rich natural gas gathering lines, a residue pipeline to Waha and an NGL pipeline to Enterprise’s Mid-America Pipeline system. These assets will be designed to integrate with the rest of the company’s Delaware Basin infrastructure.

For more information, visit www.enterpriseproducts.com

Puma opens 99th terminal

P

uma Energy has announced the opening of its 99th bulk fuel storage terminal housed at Matadi in the Democratic Republic of Congo (DRC).

With 98 terminals already owned by the firm, Puma Energy has a wealth of experience in the construction, maintenance and operation of terminals and offshore mooring systems. This new terminal is equipped to handle a variety of product types including Gasoline, Jet Fuel and Gasoil.

It will become an important hub for the shipment and distribution of petroleum products, providing security of product

supply to DRC and neighbouring countries.

The terminal was a construction project included the creation of four, 6,500m3 Clean Fuels Storage Tanks complete with truck loading and unloading racks. The site also includes a new administration building, a state-of-the-art firefighting system, a floating jetty and interconnecting jetty pipelines, further interconnecting piping with another site and a 2km concrete access road. The terminal and jetty will provide strategic vessel reception capability for DRC and the subregion.

For more information, visit www.pumaenergy.com TA NK NE WSI NTE R N ATION A L .C OM

T

The transaction is expected to close in early 2017, subject to the approvals of Technip and FMC Technologies shareholders, regulatory approvals and consents, as well as other customary closing conditions.

For more information, visit www.technip.com and www.fmctechnologies.com

31 AUTUMN EDITION 2016

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Grupo TMM, TransCanada and Sierra Oil & Gas infrastructure proposals Grupo TMM, a Mexican maritime transport and logistics company, in conjunction with TransCanada and Sierra Oil & Gas, is proposing to jointly develop storage and transportation infrastructure to serve the growing demand for refined products such as gasoline, diesel and jet fuel in the central region of Mexico.

The proposed $800m project would be the largest single investment in refined products since the establishment of the Mexico energy reform. The project includes:

• A marine terminal in Tuxpan, Veracruz for offloading vessels with a draft of 14 metres, storage and distribution.

• An approximately 265 kilometre 100,000 barrels • The Tuxpan-Central Mexico corridor •

per day refined products pipeline parallel to TransCanada’s recently awarded Tuxpan-Tula natural gas pipeline project.

An inland distribution hub in central Mexico will provide excellent connectivity to the majority of the Mexico Valley market with access to major highways and distribution centres in the country.

TA NK NE WSI NTE R N ATION A L .C OM

is the ideal route to efficiently supply refined products in the region making this project a significant contribution to the existing refined products distribution chain in Mexico.

For more information, visit www.grupotmm.com

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35 AUTUMN EDITION 2016

TA N K CO N TA I N E R S

Hoyer gets SAVVY

H

oyer Group relies on SAVVY® high tech telematics and logistics portal to ship temperature-controlled products in tank containers SAVVY, a specialist in telematics system solutions has supplied HOYER with its intelligent telematics system solution that is being used in a broad range of logistics processes.

Tank containers are equipped with the SAVVY® telematic units CargoTrac and/or FleetTrac and connected to SAVVY®’s cloud-based Synergy Portal.

Thanks to SAVVY® Synergy Portal’s customised interface, both HOYER employees and end customers have permanent access to tank container data allowing them to collaborate and optimise their logistics process control.

Among other things, continuous temperature monitoring as well as active temperature control during the entire transport cycle make uninterrupted automated quality proofs possible.

By using the new technology, HOYER aims to further increase transport and logistics productivity as well as service quality for business customers and to maintain its competitive advantage.

For more information, visit www.savvy-telematics.com

Nomination for best employer in The Netherlands Den Hartogh Logistics has been nominated for an award that names the best employer in the Netherlands.

The company already ranks among the top 60 best employers in the country and will find out if they have won in October.

A survey was carried out which askes employees to score enthusiasm, commitment and job satisfaction of employees. Den Hartogh has scored high in all categories.

Den Hartogh said it invests a great deal in its employees and through training and instruction the firm aims to make its employees ‘the best of their class’.

For more information, visit www.denhartogh.com

TA NK NE WSI NTE R N ATION A L .C OM

36 TA N K CO N TA I N E R S

AUTUMN EDITION 2016

Crowley to deliver containerised LNG to Molinos de Puerto Rico

Crowley Maritime’s LNG services group has been awarded a multi-year contract to supply containerised LNG from the US mainland to Molinos de Puerto Rico, the Caribbean arm of Ardent Mills.

The contract, executed through Crowley’s subsidiary Carib Energy (USA) , includes both the supply and transportation of LNG, and will help Molinos expand environmental sustainability efforts and better manage any weather-related power challenges that can affect the island of Puerto Rico.

The transportation of LNG from liquefaction facilities on the mainland to Molinos’ plant will be managed by Crowley’s domestic logistics team, which will coordinate the over-the-road transport of 40-foot ISO containers each carrying around

10,000 gallons of LNG, to the company’s Jacksonville., shipping terminal. Once in Jacksonville, the containers will be loaded onto company-owned vessels departing for Puerto Rico. Upon arrival on the island, Crowley’s Puerto Rico-based logistics team will deliver the LNG to the customer’s facility.

There, the LNG will be re-gasified and used for power consumption.

Crowley vice president, Greg Buffington said: “Carib Energy is extremely pleased to be a vital supplier and logistics provider of LNG to Crowley’s longtime liner services customer, Molinos de Puerto Rico.

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Our teams have been working side by side with Molinos, the Caribbean arm of Ardent Mills, assisting with the engineering to utilize the natural gas and also the logistics necessary to accommodate LNG delivery to the Molinos plant.

We want to thank Ardent Mills and Molinos for having confidence in Crowley and Carib Energy to allow us to play a pivotal role in supplying a cost-efficient, safe, reliable and environmentally friendly natural gas fuel source for their operations.”

Molinos de Puerto Rico president, Jon Stuewe said: “We appreciate the nearly two years of thoughtful care and planning that have gone into this effort. We also appreciate the additional capabilities and assured ingredient supply made possible by this important alternate fuel source. We are committed to operating across our supply chain with innovative ideas that also deliver a more positive environmental impact.”

For more information, visit www.crowley.com

37 AUTUMN EDITION 2016

EXSIF Worldwide, launches new, automated tank test approval website

E

XSIF Worldwide, announces the launch of its new automated tank test approval website. The new system will go live and be operational effective May 18, 2016. This new initiative is part of an ongoing effort to provide the customers and business partners with superior service and solutions for managing periodic tank testing inspections. The new automated system is user-friendly and offers 24/7 connectivity to the tank testing database, ensuring real time testing confirmation and approval. The service center in Purchase will however remain accessible to deal with any specific requests or requirements. The company says that it is confident this new system

and its ease of use will provide significant benefits enhancing the overall experience of working with EXSIF globally.

Established in 2000, EXSIF Worldwide, headquartered in Purchase NY, one of the world’s leading tank container lessor with a fleet of over 45,000 tanks.

With a highly experienced and talented team of industry proven professionals strategically located in regional offices, and a comprehensive customer service infrastructure, EXSIF Worldwide. has built a unique foundation for ongoing innovation and success.

For more information, visit www.exsif.com

TA N K CO N TA I N E R S

Hoover CEO on PESA board Hoover Container Solutions’ chairman and CEO, Donald Young, has been elected to the Petroleum Equipment & Services Association (PESA) Advisory Board for a three-year term.

PESA’s leadership is comprised of experienced industry executives dedicated to advancing priorities of the service and supply sector. The role of the PESA Advisory Board is to offer insight to the PESA board of directors and staff, promote PESA participation within their own companies and strengthen PESA’s member ranks via personal industry connections.

Donald Young has been chairman and CEO of Hoover Container Solutions since 2008.

He is confident that serving on PESA’s Advisory Board will bring new opportunities and positive collaborations with fellow industry leaders.

Hoover Container Solutions says that it “values PESA’s representation of the energy industry’s oilfield service, supply and manufacturing companies and PESA’s promotion of development in innovative technologies, advocacy for policies that support US energy production and all efforts to properly equip decision-makers with knowledge that support the energy industry’s role as a driver of the US economy.”

For more information visit, www.hooversolutions.com

TA NK NE WSI NTE R N ATION A L .C OM

38 TA N K CO N TA I N E R S

AUTUMN EDITION 2016

VTG Tanktainer invests in 1,300 tank containers VTG Tanktainer is launching a new project which has seen 1,300 tank containers built and delivered since May this year.

Managing Director of VTG Tanktainer, Heike Clausen said: “With this new build program, we’re reacting to the current market situation and simultaneously prepare for the future.”

To satisfy the various technical requirements of each customer quickly and flexibly, the company is producing tank containers which conform to high-quality unit specifications. VTG Tanktainer will, therefore, satisfy the expected market, customer and safety requirements in the coming years.

About 1,000 standard T11 20’ tank containers were built by Chinese company Singamas, a worldwide leading supplier of tank containers. These new-builds will be primarily used to meet the demands of the Asia market, where market demand remains high.

VTG has also commissioned the construction tank containers in South Africa and Belgium which, for example, are fitted with integrated surge plates or electric heating or which would allow the transportation of hydrogen peroxide.

Altogether, VTG has invested around €18m in the new-build programme. This measure demonstrates the company’s commitment to safety and quality: Heike said: “Our customers are not the only ones who expect state-of-the-art equipment.

We have of course made it our mission to transport highly sensitive goods of this sort in the safest way possible.

That’s where our competence lies.”

For more information, visit www.votg.de TA NK NE WSI NTE R N ATION A L .C OM

Valve and Sealing Manufacturer for the Tank Industry www.pelicanworldwide.com

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elican Worldwide is one of the top global

manufacturers and supplier of valves, gaskets, and ancillary products for the liquid and dry bulk tank transportation industries. As a Pelican customer you can be confident in the quality of our products, the speed they are delivered, and the customer service that our representatives provide each day. We are proud to deliver a partnership style relationship that welcomes the customer’s highest expectations time and time again. Pelican Worldwide has what you need in stock, ready for “Just in Time” delivery. We offer 5500 line items available to ship immediately from our own worldwide distribution centers! p p p p p Top Discharge Assembly p Syphon Tube p Gaskets

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CENTRE FOR POSSIBLE DRILLING 1 4"

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A First issue Rev Status

andre Drawn

NAME

andre

DRAWN

FM

14-9-2012

APPROVED SCALE

JL

17-9-2012

1:1

SHEET

UNIT REV

A1 AM PROJ

FM Checked

JL 17-9-2012 Approved Date

DATE

28-7-2014

CHECKED

mm A

MATERIAL

SS316

THIS DOCUMENT AND THE TECHNOLOGY MENTIONED ON IT IS THE PROPERTY OF PELICAN WORLDWIDE. IT IS PROHIBITED TO COPY OR DISCLOSE THIS TO THIRD PARTIES WITHOUT THE EXPLICIT WRITTEN PERMISSION OF PELICAN WORLDWIDE. TITLE

TYPE

BALL VALVES AIRLINE 2" BSP

PART NO./DRAWING NO.

103502-50 WITH DUSTCAP WEIGHT

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4,2 kg

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lobal supply chain solutions company, Brambles Limited, the owner of Ferguson and CCC, and First Reserve, the owner of Hoover, a leading private equity and infrastructure investment firm exclusively focused on energy, reached an agreement on August 4, 2016 to form a 50:50 joint venture through the merger.

The combined HFG business will provide their full range of customers with leading products and solutions through an unparalleled global network of more than 70 service centres and 550 team members.

Leading the market

HOOVER MERGER

Hoover, Ferguson and CHEP merger Hoover Container Solutions, Ferguson Group and CHEP Catalyst & Chemical Containers, three global providers of container solutions products in the energy, petrochemical and general industrial markets, announce merging to form Hoover Ferguson Group (HFG).

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The new company will have a leading market presence in every major energy basin and petrochemical manufacturing centre, with more than 110,000 rental units worldwide. HFG will also be a worldwide leader in the manufacturing of a comprehensive range of intermediate bulk containers (IBCs) and offshore workspace and accommodation modules.

Donald W. Young, CEO of Hoover, will lead the new company, supported by a management team comprised of senior executives from Ferguson, CCC, Hoover and Brambles. He commented: “This strategic merger is a great opportunity for all three companies to expand complementary products and service offerings while also broadening our relationships with existing and potential customers. This will strengthen our product and service line offering worldwide. Hoover Ferguson Group combines the very best people, solutions and industry expertise which allows us to continue to provide quality products and unparalleled customer service to all of our clients.”

The merger transaction anticipates completion during October 2016, subject to regulatory clearance and the satisfaction of customary conditions.

For more information, visit www.hooverferguson.com and www.hooversolutions.com

41 AUTUMN EDITION 2016

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Odyssey Logistics & Technology named among top 3PL providers

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or the twelfth consecutive year, Odyssey Logistics & Technology Corporation has been named as a top third-party provider in Inbound Logistics’ 2016 Top 100 Third Party Logistics (3PL) Provider list.

The list is a qualitative assessment of the service providers that the magazine deems to be the most efficient at meeting and surpassing constantly evolving global logistics needs.

Chief executive officer at Odyssey, Robert Shellman said: “Being recognised

by Inbound Logistics is a confirmation of our

commitment to being a leader in the global logistics business. We continue to invest in a portfolio of services that help our clients with diverse and complex logistics needs.”

In 2015, Odyssey formally launched WIN™ (Web Integrated Network), a free cloud-based transportation management solution that offers shippers an efficient, single-source system to make logistics and transportation easier, faster and more cost effective. Odyssey also introduced a new international logistics service for the metals industry in 2015 that is an extension of the domestic service it currently provides.

Odyssey is a global logistics solutions provider with an over $2B freight network and delivered services including international transportation management, intermodal services, trucking services, and managed services and consulting.

For more information, visit www.odysseylogistics.com

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Delivering a market outlook for tank containers at Intermodal Asia 2017

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ntermodal Asia - the world leading exhibition and conference for the intermodal industry - will bring together global representatives to discuss the wider impact of ‘Container and Intermodal Transport on the Global Economy’ in Shanghai from 21st – 23rd March 2017.

The shipping industry has been widely described as a ‘Global Economic Engine’ for two reasons: the significant amount that the industry contributes directly to the global economy, and the role of the industry as a facilitator of economic growth for other industries. “Last year was a challenging year for the industry as a whole and now, more than ever, it is important that the industry comes together to discuss these challenges being faced and how best we can work together to push the industry forward,” explains Sophie Ahmed, event director.

The tank container industry continues to grow both in terms of the volume of cargo transported and the number of tank containers in the global fleet. This growth reflects the growing recognition of the tank container as a safe, reliable, economic and sustainable means of transport.

Working closely with @tco, the

Asian Tank Container Organisation, Intermodal Asia aims to address prevailing issues currently facing the Tank industry, including provision of tank cleaning and repair services in Asia.

Hosting its Tank Container Forum within the Intermodal Asia Conference, @tco aims to help spread best practice in the Tank Container Industry in Asia.

“I am pleased to confirm that @tco will be supporting Intermodal Asia again in Shanghai in 2017” says Reginald Lee, President of @tco. “Intermodal Asia gives us the opportunity to highlight the safe handling of liquids in the Asia market, as well as allowing our members and other companies within the supply chain to come together as an industry”.

The 2016 forum attracted speakers from the Association of International Chemical Manufacturers (AICM), which represents the interests of multinational producers operating within China, as well as representatives from the Shanghai Maritime University, International Council of Chemical Associations, Exsif, B.A.S.F, Merck and Dow Chemicals. Sessions included Technical & Safety issues, Risk Management, Minimum Requirements for

Tank Cleaning and an Overview of the Current China Market In addition to the focus on Tank Containers within the Conference Programme, the Intermodal Asia exhibition is also comprised of many tank related exhibitors including: Bureau Veritas, CIMC, CXIC, RAM Intermodal Software, NT Tank, Singamas, Triton International and Seaco.

In Partnership with the CCIA (China Container Industry Association), Intermodal Asia provides a platform in Asia for the global industry to do business, network and keep updated with current trends. “In 2016, China will create more efficient, intelligent and modern logistics to keep in line with international practice and bring positive change for future global development” explains Mr Bo Liang Mai, chairman of the CCIA, CEO & president of CIMC. “And Intermodal Asia has become a platform that facilitates opportunities for business growth between Chinese and international companies.”

For more information, visit www.intermodal-asia.com

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45 AUTUMN EDITION 2016

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INTERNATIONAL JONT VENTURE SIGN

Aspen and Van den Bosch sign JV Transport solutions to South Africa from Cape Town and Dubai

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spen International has concluded a joint venture with bulk transport company Van den Bosch. With this joint venture two new sites have been opened: one in Cape Town and one in Dubai.

The name of the new company is Aspen International. Aspen International will offer a full range of transport solutions to and from the South African market from the strategic hubs in Cape Town and Dubai. The main focus is on shipping liquid bulk products (food as well as chemicals) in tank containers in cooperation with Van den Bosch DMCC in Dubai. Moreover, the business includes shipping liquid bulk products in flexitanks, palletised dry goods in 6m and 12m general purpose containers,

as well as perishable goods in reefer tanks and containers.

Expansion For Aspen International, the joint venture offers the opportunity to expand its services with the tank container activities of Van den Bosch. Aspen International will cooperate intensively with Van den Bosch DMCC in Dubai, for that very purpose. “The cooperation will mean a one stop shop concept with access to a wide range of transport solutions, all under one roof for our clients”, Gary van Niekerk explains. “Moreover we can also take care of the local transport handling, taking advantage of our strong intermodal network in Europe, Africa and Asia.

In this way we offer a complete door-to-door solution for the South African market.”

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Next step For Van den Bosch, the cooperation is another new step ahead in the African market. “We believe in Africa’s potential and want to further develop this growth market”, Peter van den Bosch explains.

“We have built a strong network in the past few years and we are now shipping various liquid bulk goods from, to and in Africa. Thanks to the new office in Cape Town, we will be locally represented in South Africa, so we will be able to support our clients even better in setting up and optimizing their flows of goods from and to Africa.”

For more information, visit www.aspen.co.za

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APL strengthens Asia-Europe service offerings with New India Pakistan Europe service

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PL has announced the launch of a new weekly service, the India Pakistan Europe (IPE) Service, directly connecting the key South Asian markets of India and Pakistan to major ports in Europe. The new IPE service builds on APL’s strong market presence and local expertise in India and Pakistan to enhance its Asia-Europe service offerings.

APL head of Asia Europe trade, Eric Eng said: “Europe is a premier trading

partner and a major export market of South Asian countries. It is opportune that we expand our service coverage in Asia-Europe through the new IPE service, directly linking the major economies of India and Pakistan to Europe. As APL offers market connectivity, our priorities are also to provide reliable and timely cargo shipments across all regions.”

For more information, visit www.apl.com

Eurotainer introduces swap body tank containers to their fleet Eurotainer has taken delivery of new 37,000 liter capacity tank containers in China.

These tanks are built for domestic Chinese service and are the largest capacity liquid, swap body type tank containers in the Eurotainer fleet.

The initial order was for nine units which have now been followed by several additional orders as demand for this new design is high in China. They are also the largest capacity liquid type ISO tank available in the Chinese domestic market. This new design uses the latest developments in tank container engineering and construction to maximise capacity, reduce tare weight to deliver optimal shipment quantities, increase storage capacity and lower overall supply chain costs for clients. For more information visit www.eurotainer.com TA NK NE WSI NTE R N ATION A L .C OM

View products & services from different suppliers... in the industry’s only tank storage service providers APP

Samskip named as award finalist

S

amskip has been selected as a finalist in the Supply Chain Partnership category of the 2016 Global Freight Awards.

Samskip’s award entry describes the close collaboration that developed into a cost effective multimodal solution for Howden freight moves between the Continent and the UK. In particular, the entry focuses on the way multimodal’s flexibility and reliability were fully tested in 2015 when a complete shut down in channel tunnel services coincided with Howdens’ extraordinary summer loading peak period. This solution has also brought net environmental gains. Last year, Howdens avoided around 292,000 kgs as CO2 emissions – equal to 10,620 trees – from equivalent road moves.

Celebrating its 20th anniversary, the Global Freight Awards is the highlight of the freight and logistics industry calendar; recognising and rewarding the best talent and achievements of the year. This year it will be staged at London’s Lancaster London Hotel on Thursday November 3.

For more information, visit www.samskip.com

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RSA-TALKE and Dow sign supply chain contract CHEMICAL LOGISTICS JOINT VENTURE

An affiliate of The Dow Chemical Company and RSA-TALKE have signed a contract for the storage of chemical products that will be manufactured by Dow from various production sites globally.

With this joint venture for chemical logistics RSA-TALKE will receive and store Dow products in its specialised chemical warehouses in Dubai.

These warehouses are located at the Aerotropolis also known as Dubai South.

RSA-TALKE’s complex at Dubai South has been designed to store chemicals and petrochemicals to the highest international standards.

The company – a joint venture of Dubai-based RSA Logistics and the German TALKE Group – caters to the demand

of customers from the chemical and petrochemical industries in the Gulf region.

Director Middle East & USA at TALKE and director at RSA-TALKE, Richard Heath said: “The signing of this significant agreement with Dow has again confirmed the interest of our customers in our strategy of providing a full service portfolio for chemical logistics in Dubai.”

Managing director at RSA Logistics and director at RSA-TALKE, Abhishek Ajay Shah said: “We have worked hard in the past couple of years to create top quality facilities

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based on the highest international standards and the journey continues with the very recent opening of our integrated chemicals hub in Jebel Ali free zone.”

Associate director of logistics and international trade for Dow Middle East and Africa, Ihab Elia said: “Dow clearly sees the Middle East as a core region in its total business model, whether for local production or as part of their global supply chain. RSA-TALKE will play an integral part in Dow’s growth story, as we progress and drive to ensure we work with world class service providers with the right focus on safety, value, and quality.” He also added that “this partnership is not new but an expansion on the trust built and established between our entities through historic and current operations. We look forward to achieve further successes in the future.”

For more information, visit www.rsatalke.com

29 SEP – 01 OCT 2016 MESSE KASSEL / GERMANY FUEL HANDLING A – Z

International Trade Fair for Logistics, Transportation and Handling in the Petroleum Industry www.expopetrotrans.com

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from IAA commercial vehicles show in Hannover to expo PetroTrans in Kassel TA NK NE WSI NTE R N ATION A L .C OM

Thursday, Friday 9 am – 6 pm Saturday 9 am – 4 pm Messe Kassel, Damaschkestr. 55, 34121 Kassel, Germany

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THAMES OILPORT GROWTH

Thames Oilport announces additional diesel tankage

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hames Oiltanking, a company that manages the fuel supply chain for customers, is to set to expand the amount of tankage to be used for diesel storage, bringing into use a further 56,000 cbm3 of tankage from Q1 2017.

Essar signs deal to supply aviation fuel direct to Emirates

E

ssar Oil (UK) Limited, which owns and operates the Stanlow Refinery at Ellesmere Port, has signed its first agreement for the direct supply of aviation fuel to a commercial carrier, with a major deal having been agreed with Emirates airline at Manchester Airport.

Emirates, the world’s largest international airline, flies three times daily from Manchester to Dubai operating the carrier’s Boeing 777-300 and its flagship Airbus A380 aircraft, the world’s largest passenger jet.

Stanlow, which produces 16% of the UK’s road transport fuel demand, manufactures over two billion litres of jet fuel each year and plays a key role in the North West’s aviation industry. It currently supplies, on a wholesale basis, a significant proportion of Manchester Airport as well as Liverpool John Lennon and other regional Airports jet fuel demand.

However, this is the first time Essar Oil UK will directly supply aviation fuel to an airline, with discussions with other potential partners already underway.

Head of marketing at Essar Oil UK, Colin Dixon said: “This is a major milestone in our strategy of further downstream integration, combining our refinery supply strength with our marketing capabilities in the aviation sector. We look forward to becoming a key player in the aviation market.”

This is additional to the 175,000cbm3 of tankage which came into use in April 2016 and the 64,000 cbm3 of tankage which was commissioned earlier this month. Thames Oilport is being developed in phases, beginning with diesel storage and moving on to storage and road loading for other products.

The firm has an in-house haulage operation with more than 250 drivers and a fleet of road tankers liveried in our customers’ brands as well as in the Greenergy and Flexigrid brands.

For more, information visit www.greenenergy.com

For more information, visit www.essaroil.co.uk

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51 AUTUMN EDITION 2016

ABBEY MBO

Abbey Logistics MBO

N

orthEdge Capital has invested an undisclosed sum in support of a management buy-out of Abbey Logistics Group, a Liverpool-headquartered company led by CEO Steve Granite.

Abbey Logistics was set up more than 25 years ago by the Lucy family, specialising initially in liquid food ingredients, with more recent diversification into the bulk powder market, palletised transport and warehousing. It

transports hazardous cargo and has a tank cleaning division.

Abbey Logistics has demonstrated strong growth over the past five years with turnover increasing from £20m to over £55m in the current financial year following a number of acquisitions and large contract wins.

The funding will support the business as it continues to expand in an industry worth around £55bn to the UK economy. Abbey will be targeting

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growth with new and existing customers, as well as exploring a number of acquisition opportunities that management have been progressing in parallel to the MBO with support from NorthEdge Capital. The deal will provide a full exit for the founding family and the business will continue to be led by Steve Granite as CEO and Dave Coulson as commercial director.

Steve Granite said: “We are delighted to have partnered with Northedge Capital to complete the MBO and enable the Lucy family to exit the business realising their well-earned value. Northedge is the right partner for Abbey and we have been suitably impressed with the firm since our first meet earlier this year. It is an exciting new chapter in the company’s life and we are very much looking forward to continuing the successful journey we’ve experienced to date.”

For more information, visit www.abbeylogisticsgroup.com

Changing the face of bulk fluids transportation assist@emcowheaton.com www.emcowheaton.com

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Centurion Midstream Group acquires Permian Crude Transport

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enturion Midstream Group, has acquired Permian Crude Transport, and its affiliates. PCT is a growing provider of integrated crude logistics s ervices with operations throughout the Permian Basin. CEO of Centurion, Tom Ramsey said: “Permian Crude Transport has an impressive track record for growth that will fit with our significant investment in West Texas storage, pipeline and rail assets.”

President of PCT, Jarrett Vick said: “Working with such a dynamic, growth-oriented company will allow us to best leverage our asset base and our customer relationships.”

PCT will operate as a separate, wholly-owned subsidiary of Centurion and Mr Vick will remain as president. For more information, visit www.pctcrude.com

Hoyer expands BP relationship Hoyer has announced that it has entered into a long term agreement with BP to provide bulk fuel transport and logistics services throughout the UK. As part of the contract, HOYER Petrolog UK will take on responsibility for order taking, stock management, scheduling, despatch, physical execution and reconciliation of all retail fuels in the UK as well as aviation fuels in Northern Ireland.

Making the announcement, Mark Binns, managing director HOYER Petrolog UK said: “We are delighted to confirm this new contract involving more than 400 staff and drivers. The agreement is a significant step in Hoyer achieving its strategic growth objectives for both the UK and across Europe.”

He added: “This contract award also builds on the already existing relationship between the Hoyer Group and BP who are one of our most important corporate customers.” For more information, visit www.hoyer-group.com

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53 AUTUMN EDITION 2016

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S TARKE Y G ROWS

Starkey Tankers adds Magyar to fleet

S

TCL’s latest 30,000 litres capacity milk re-load tankers are now ready for hire

TCL Tanker Rental continues to grow TCL Tanker Rental, a member of Turner Group’s Asset Rental division, has recently invested in an additional 26 tankers, at a market value of over £2,000,000.

T

hese units will form part of TCL’s rental fleet and are ready to be on-hire with a broad range of companies within the UK. They underline TCL’s objective to supply the newest and most operationally-efficient units in the UK market.

This investment takes the number of new tankers TCL have acquired over the last five years to 105, with a market value of over £8,000,000 - the majority of which has

been spent with UK suppliers. TCL now has a rental fleet of over 250 assets.

Based in Leeds, TCL offer a wide range of tankers for rental throughout the UK, covering food, milk, water, chemical, waste and Petroleum sector applications, as well as providing operational support.

For further information, visit www.tcl-tankers.com

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tarkey Tankers continues to grow its fleet of vehicles with the latest new additions being a range of milk reload tankers supplied by Magyar.

The North West England-based firm has more than 25 years experience in the bulk fluid transport industry and specialises in the hire and sale of ADR general purpose and food grade tanker trailers. The business supplies a variety of industries with tanker trailers including oils, chemicals, food and beverage sectors.

Over the last three years the business has invested heavily in the milk industry with the purchase of a significant amount of new Magyar 30,000 litre milk reload tankers to join the fleet. The firm also purchases new tankers from UKbased Crossland tankers.

A company representative said the firm has plans for further expansion and aims to consolidate its existing fleet via a replacement program as well as growing its vehicle numbers to further cater for the industries it works within.

For more information, visit www.starkeytankers.co.uk

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EDUCATION OPPORTUNITIES

New events for the tank truck industry The first Global Tank Truck Conference is due to take pace in October.

The event, which is sponsored by Amthor International, will be held from October 6th to 8th at the Grandover Resort and Conference Center in Greensboro, NC. Diversification in a changing economy has been chosen as the theme of the inaugural event with the purpose being billed as: bringing leaders, business owners, managers and entrepreneurs in the refined fuel, propane, portable restroom, vacuum and septic pumping industries together to share ideas about growth and diversification.

Attendees will have the opportunity to attend educational seminars, workshops and the trade show which is attached to the conference. Workshop topics will include: Navigating government regulations; new ways to market your business; vehicle safety and roll overs and diversifying your business.

for business owners and managers in the refined fuel, propane and vacuum industry to come together, talk about the changing economy and business conditions and brainstorm about ways to diversify and grow. The GTTC conference provides opportunity for education, networking and recreation at a beautiful resort and conference center. We welcome our colleagues and look forward to seeing everyone at the GTTC conference in October.”

Amthor vice president, Brian Amthor said: “The GTTC 2016 is a terrific opportunity

For more information, visit www.globaltanktruckconference.com

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MFG’s second acquisition in a week MFG has announced its second acquisition in a week. At the beginning of the month the firm released details of the purchase of Synergie Holdings and then just four dates later issued a statement regarding the purchase of Roadside Group.

Synergie has a network of 19 forecourts situated throughout the North-West of England with the Roadside Group operating 10 stations throughout the North-East of England.

Both transactions are due to complete before the end of the year.

Chief operating officer at MFG, Jeremy Clarke said of the Roadside deal: “We are delighted to confirm this transaction within days of our Synergie deal.

This is an important strategic acquisition for us. Until now, we have only had a couple of stations in the North-East. The addition of this high quality network will give us some real momentum in this region of the UK. This acquisition will bring our total number of stations to 405 and by breaking the 400 barrier, we are getting closer to our stated objective of becoming the UK’s most dynamic and profitable independent forecourt operator.”

For more information, visit www.motorfuelgroup.com

55 AUTUMN EDITION 2016

Made by Elaflex.

MILLER AWARD

Miller employee receives award Miller Transporters has announced that Ray Riley, director of safety, was named Safety Professional of the Year by National Tank Truck Carriers (NTTC) at the Tank Truck Safety & Security Council Annual Meeting in St. Petersburg, Florida.

Ray Riley said: “Although I was the individual named for the award, this award was due to the efforts of everyone at Miller Transporters. The commitment to a safe work environment is shared by all Miller employees and contractors.”

Company President Lee Miller said: “Miller Transporters is honoured for our own Ray Riley to receive this award from the NTTC. Miller’s senior leadership has always been about having a ‘safety first culture.’ Having dedicated and passionate individuals, like Ray, who help implement, train, and enforce our policies, allows us to stay true to our core values. We are thankful that Ray and his dedicated Safety team work with our driving fleet and other personnel, to help each person reach their fullest potential when it comes to doing their job safely.” Miller Transporters is a for-hire liquid bulk chemical carrier that has been in business for almost 75 years.

For more information about NTTC, visit www.tanktruck.org and to learn about Miller, visit www.millert.com

Clugston Group CEO to leave company after 10 years The Clugston Group has announced that chief executive Stephen Martin will be leaving the Group late in 2016.

Stephen Martin, who has led The Clugston Group for 10 years, will take up

the position of director general at the Institute of Directors following his departure. During his time at The Clugston Group, the company has featured in The Sunday Times Profit Track 100, The Sunday Times Top Track 250, and been celebrated in the London Stock Exchange’s 1,000 Companies to Inspire Britain report.

He has also been recognised personally with several business awards during his time with The Group.

Chairman of The Clugston Group, John Clugston said: “Stephen has been a most effective and loyal CEO and whilst we are sorry to see him leave The Group, we are delighted he will be taking up such a prestigious appointment.

Once Stephen’s successor has been selected a further announcement will be made by The Group.”

NEW Camlock Couplings 100% to EN 14420-7.

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The new design also features rugged and ergonomically shaped levers for improved handling.

DN 19 to 100 mm stainless steel couplings with female BSP thread connection or with integrated hose tail are available ex stock.

For more information, visit www.clugston.co.uk TA NK NE WSI NTE R N ATION A L .C OM

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The impact of transportation and testing speed for fuel samples The Standard Guide for Microbial Contamination in Fuels and Fuel Systems, ASTM D6469 – 14, states in Section 8.5 that, “Samples for Microbiological testing should be kept on ice for transport to the laboratory,”

“Tests should be performed within 4h costs and risk of damage to valuable assets. and no later than 24h after sampling.

Contamination organisms and Samples stored at higher temperatures, their life products can cause blocking and or for longer times, can show the corrosion in a fuel system. Water is the presence of microbial contamination lifeblood for the organisms. As it is heavier that does not represent actual fuel than fuel and so often settles at the bottom system conditions.” If this is the case, of a fuel tank, good fuel husbandry with how can operators best handle regular water draining is a vital part of testing of fuel samples as keeping supplies and assets clean part of a strategy to protect and healthy. The increased use of their assets from the biofuels, however, means that Frequent damage cause by microbial water can be left in suspension testing contamination. for longer, making water essential This is a biological drainage less effective. phenomenon that affects diesel Microbial contamination fuels. Microbes occur naturally presents risks to operations in the water phase found within fuel and businesses. supplies. They extract oxygen from the From storage, through transport to water and feed off carbon in the fuel. Also forecourt sales and engine fuel tanks; known as the ‘Diesel Bug’, contamination contamination increases the risk of failures is caused by the presence of bacteria, and reduces operational efficiency. A yeasts and moulds with the lead organism build-up of organisms in the fuel creates a most often being Hormoconis resinae (H carpet of biomass that can cause blockages Res); a filamentous (long stranded) fungi. of pipelines and filters. Such biomass layers Contamination can be an issue for all also generate organic acids that pit corrode types of organisations that are storing or metal surfaces that they come into contact transporting diesel. Storage terminals, tank with. The damage this can cause can be containers, road tankers, shipping vessels, extensive; attacking welds, seams, bolted ports and rail tankers can all be affected areas, flanges and filter housings, and with detrimental impact on operational

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can even impact on the structural integrity of an asset.

Acceptable levels of microbial contamination are currently specified by IATA and Joint Inspections Group (JIG) for aviation fuel supplies but this is also likely to be soon adopted within the supply chain for Marine Gas Oil (MGO). Guidelines are provided for the early detection of microbial contamination and are designed to help protect an operation from the damage caused if biomass layers are allowed to build up. Having an actual point that determines whether contamination levels are acceptably low means that tests can give a simple ‘yes’ or ‘no’ as to whether a supply is infected. This makes the interpretation of the test results simple for the operator. Further indication of levels of contamination (moderate or high) if above the low level, means that operators can also easily determine whether treatment with a kill dose of approved biocide will suffice or whether a complete fuel drain and tank clean are required.

So how frequently should testing be carried out?

Frequency will depend upon a risk assessment as to the affect a microbial

57 AUTUMN EDITION 2016

contamination will have on the business.

Test periods should then be dynamically adjusted according to the results found during testing. If no contaminations are present over a period of time, for example, it may be acceptable to increase intervals between testing. Equally, if high levels of contamination are detected, testing intervals should be reduced.

As identified in ASTM D6469, one of the problems with testing is that microbial contamination can rapidly multiply. As such, the time to get a test result is a critical factor in determining the best corrective action required. Tests that give results in the shortest periods of time, therefore, offer significant commercial benefits. This is one area where immunoassay test kits can offer real advantages to a good fuel husbandry regime.

Immunoassay test kits work in the same way as a pregnancy test, giving a straightforward ‘yes’ or ‘no’ answer to whether fuel is contaminated. They are low cost,

easy to use, require no special handling or storage, and can be disposed of in line with the usual procedures for disposal of fuel. They are so simple to use they can be used anywhere where fuel is used, stored or transported across road, rail and marine fuel supply chains. Because of how the tests work, there is no need for transportation to a laboratory; testing can be carried out on site, and results are almost instantaneous.

This further lowers the cost of good fuel management and means that no special procedures are needed to meet the ASTM D6469 standard in terms of time to test or transportation of fuel samples.

As microbial contamination of fuel supplies can occur anywhere in the fuel supply chain and can be transferred along it, even a cleaned fuel tank can become re-infected. The only real way to manage this issue and protect against the risk of serious damage to storage tanks, pipelines and vehicles; is to implement a strategy that incorporates regular testing. The immunoassay test kit gives operators a way of doing this without special training or adding significant maintenance overheads.

It acts as an insurance policy to protect assets and operational efficiency. It also gives an accurate measure as to what corrective action is required and can prevent the unnecessary dosing or cleaning

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R OA D TA N K E R S

of tanks, thereby significantly lowering maintenance time and cost. At the end of the day, it pays to know if a fuel source is contaminated and if it isn’t.

Traditional microbial contamination testing can take up to five days and require transport of fuel samples to a laboratory.

During this period, not only may the sample be compromised, a vessel may already have left port or a tanker delivered its fuel and carried infection along the fuel supply chain. Any issues arising as a result create additional expense but can have a greater impact on any operation if they result in potential Health and Safety issues, damage to reputation or loss of availability of assets while they are emptied and cleaned. Catching contamination early and quickly makes for good fuel husbandry and, using immunoassay test kits, can happen quickly and easily along the supply chain; reducing risks and increasing an operation’s profitability. Time matters – both to meet the ASTM D6469 standard and lower maintenance overheads. The immunoassay test kit technology makes the risk of not having a regular testing regime simply not worth taking.

For more information, visit www.conidia.com

Wednesday 10th & Thursday 11th May 2017 at the Liverpool ECL

Ninety-five per cent of this year’s exhibitors surveyed said FPS Expo is now bigger and better for business.

Why don’t you join us in 2017?

Call: +44 (0)113 224 2213 www.fpsshow.co.uk | For exhibitor opportunities contact: Alison Dickson E: Adickson@communicateco.com T: +44 (0)113 224 2213

59 AUTUMN EDITION 2016

R OA D TA N K E R S

Emco Wheaton focus on Asia Pacific growth Emco Wheaton is strengthening its position in the Asia Pacific regions through the appointed of Dan Chew as the local sales director.

Dan Chew joins the global supplier of fluid transfer solutions where he was the Asia Pacific business development manager. At Emco Wheaton he will be responsible for all sales as well as developing innovative sales strategies for all products in the region including loading arms, tank truck equipment and the TODO range of products.

Dan Chew, who holds a Bachelor of Science (Computing) from the University of Portsmouth and a diploma in Mechatronics from Temasek Polytechnic in Singapore, will also be responsible for delivering the highest possible levels of customer service and benefits in line with the company’s growing Aftermarket presence.

Dan will be based at Emco Wheaton’s Shanghai, China, offices and will report directly to Gene Sparkman, vice-president of Sales. Dan will manage the regions’ current sales team.

The team at Emco Wheaton are looking forward to Dan making an immediate impact on the Emco Wheaton brand and sales due to his decade of experience in the region.

For more information visit www.emcowheaton.com

Rix Petroleum invests more than £1m in new tankers Rix Petroleum has invested more than £1m in six new Scania tankers and two new tanker units for use at its depots in Yorkshire, East Anglia and Shropshire. The vehicles will be used to transport domestic heating oil and commercial fuels to rural homeowners, farmers, hauliers and other commercial business. The new fleet includes four six-wheel tankers, one four-wheeler, one eight wheeler and two tractor units, and will replace older tankers coming to the end of their working lives as well as expand the company’s overall fleet.

Director of Rix Petroleum, Duncan Lambert said the company had seen an increase in sales across all of the areas in which it operates, making the investment a necessity for the year ahead.

“These vehicles will replace some of our tankers that are around 10 years old and as such, have served their time with us. They will also add to our existing fleet to enable us to fulfil the growing number of orders coming in.”

“The new tankers will ensure that we are able to maintain the levels of customer service we are known for, delivering the required quantity of product to our customers at exactly the time they require it. By not investing we might have compromised that, and that is not something we are prepared to risk. We have been delivering fuel for more than 80 years and know that people and businesses depend on us. Buying these vehicles means we can continue to serve their needs in the way they expect,” he said.

All the new trucks conform to the AdBlue Euro 6 emissions standards, ensuring they are among the most environmentally friendly on the road.

For more information, visit www.rix.co.uk

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60 SHIPPING

AUTUMN EDITION 2016

Ektank orders two product & chemical tankers Swedish shipowner Ektank has ordered two newbuilding intermediate product/ chemical tankers from the Chengxi Shipyard. The vessels will be built to a design, developed by FKAB and Ektank.

The 18,600 dwt tankers are scheduled for delivery in 2018. The project, FKAB T28 is a 22 700 m3, oil product & chemical tier II tanker.

CEO of Ektank, Jörgen Johnsson said: “It has been very interesting to develop and further elaborate the design together with FKAB creating the next generation of product/chemical tankers. These vessels will be designed to meet all known future demands both from governments, the industry and from our customers.”

For more information, visit www.fkab.se and www.suretank.com

MR Tanker time harter rates under pressure

FIRST OF FOUR

Delivery of Navigator Aurora

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he first of the four Navigator Gas ethane/ ethylene midsize vessels, Navigator Aurora, was delivered by Jiangnan Shipyard in Shanghai to Borealis.

With a length of 180 m, the newly-built vessel Navigator Aurora has a carrying capacity of 37,300 cbm3, enabling it to hold up to 20,000 tonnes of ethane/ethylene, making it the largest ethane/ethylenecapable vessel currently working.

This state of the art vessel has been chartered for a minimum of 10 years to the European chemical group Borealis for the

transport of ethane from the US East Coast to Europe, with commercial operations scheduled to begin in the fourth quarter of 2016.

Designed The Aurora’s propulsion and electrical systems are designed to use LNG or methane as fuel in addition to the normal heavy fuel and marine gas oil.

For more information, visit www.navigatorgas.com

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Time charter rates in the smaller chemical tanker vessel sizes are expected to remain stable over the next two years, but rates for the larger sizes, especially MRs, will decline due to the impact of falling clean petroleum products freight rates, according to the latest edition of the Chemical Forecaster, published by global shipping consultancy Drewry.

Weakened chemical tanker freight rates in the second quarter of 2016 have resulted in softer time charter rates. Drewry anticipates a modest improvement in the CPP market in the next two quarters, but expects chemical tanker freight rates to remain weak in Q3 with a pick up in Q4 of this year. This is because demand from China will reduce as plants shut down from end-August to early September for the G20 summit.

For more information and to see the edition of Chemical Forecaster visit www.drewry.co.uk

61 AUTUMN EDITION 2016

SHIPPING

LNG market needs more vessels than currently on order

8 0 % D ECLN E IN S POT R ATE S

Despite the current weakness in LNG shipping rates, Drewry maintains its long-term outlook for LNG shipping and believes that the market will require more vessels than listed on the current orderbook, according to the latest edition of the LNG Forecaster report published by global shipping consultancy Drewry.

Spot rates for dual fuel diesel electric LNG vessels have been hovering around $30,000 per day since the second quarter of last year, representing a decline of 80% compared to the last market peak in 2012.

Strong fleet growth coupled with weak cargo demand has been the principle cause. The impact of weak rates is clearly visible on falling newbuilding activity as only four LNG vessels had been ordered in the first six months of the year.

By comparison, an average of 44 vessels per annum were ordered over the prior five-year period. Continuingly weak ordering is expected to slow fleet growth from 2019, exactly at the time by when almost all of the currently underconstruction LNG plants will come online.

Drewry still feels that the long-term

outlook for LNG shipping is strong and the limited new ordering is not based on market fundamentals.

Drewry’s lead LNG shipping analyst, Shresth Sharma said: “The reason for our optimism is that almost 125 million tonnes of capacity is currently being built and there are plans for more. As a majority of the supply from plants under-construction has been contracted on long term agreements, it is likely that LNG will be traded so requiring more vessels.

“Despite a widened Panama Canal, new LNG export capacity due to come online by 2020 will require shipowners to order an additional 65 vessels over this period to meet shipping demand.”

Upcoming IBIA Cape Town forum to look at range of issues

T

he International Bunker Industry Association (IBIA) Africa will be hosting its second regional forum in Cape Town, South Africa this September.

IBIA CEO, Captain Peter Hall, will attend the event which will cover a number of topics essential to the African Region.

The aim of the event is to highlight the importance of establishing a good bunkering hub. The forum will bring together the region’s bunker industry for networking, and create a platform for engagement and shared learning between industry and government.

For more information, visit www.ibia.net

For more information, visit www.drewrys.co.uk TA NK NE WSI NTE R N ATION A L .C OM

62 AUTUMN EDITION 2016

SHIPPING

“THE DELIVERY OF THE WEST VIRGINIA REPRESENTS OUR TOTAL COMMITMENT AT CROWLEY TO PROVIDING THE BEST PERFORMANCE FOR OUR CUSTOMERS WITH EFFICIENCY AND INNOVATIVE SOLUTIONS”

BUILT BY PHILLY SHIPYARD

Crowley takes delivery of fourth LNG-ready tanker

The Crowley Maritime Corp has taken delivery of the MT West Virginia, the fourth new, Jones Act product tanker built for the company by Philly Shipyard.

T

he West Virginia is LNG ready, meaning it can be converted for propulsion by liquefied natural gas (LNG). West Virginia joins its sister ships, Louisiana, Ohio and Texas, which were received by Crowley in 2015 and 2016 as the first-ever tankers to receive the American Bureau of Shipping’s (ABS) LNG-Ready Level 1 approval.

Like its sister ships, West Virginia is 50,000 dead-weight-tons (dwt) and capable

of carrying 330,000 barrels of product.

The new tankers are based on a proven Hyundai Mipo Dockyards (HMD) design that incorporates numerous fuel efficiency features, flexible cargo capability and the latest regulatory requirements. The vessel is 600 feet long and is capable of carrying crude oil or refined petroleum products, as well as various chemical cargoes. Marathon Petroleum Corporation is the charterer.

Crowley’s senior vice president and general manager, Petroleum Services, Rob

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Grune said: “The delivery of the West Virginia represents our total commitment at Crowley to providing the best performance for our customers with efficiency and innovative solutions. The completion of West Virginia and its sister ships demonstrates our belief in the Jones Act trade, and our commitment to supporting our economy through US shipbuilding and crewing. We congratulate Philly Shipyard for reaching this milestone, as well as the dedicated, hard-working men and women who build and crew these ships.”

Philly Shipyard’s president and CEO, Steinar Nerbovik said: “We have appreciated a strong partnership with Crowley, stemming from the previous two Crowley tankers delivered in both 2012 and 2013, and today are proud to add these four safe and quality vessels to its growing fleet. On behalf of the men and women at the shipyard, we send our well wishes to the dedicated crew that will operate the West Virginia.”

For more information, visit www.crowley.com

Argus Africa Storage and Logistics 2016

argusmedia.com

DoubleTree Hilton Hotel, Cape Town, South Africa

16 November – Investing in Infrastructure Summit 17-18 November – AfricaConsulting Storage and Logistics Conference Events

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Your headline speakers include:

Dipo Salimonu Chief Executive, Moteriba Terminals & Logistics

Shem Simuyemba, Fund Manager, Nepad Infrastructure Project Preparation Facility (NEPAD-IPPF)

Topics on the agenda include:

Barbara Mommen, CEO, Maputo Corridor Logistics Initiative

Ezekiel Adesina Senior Business & Strategy Analyst, Nigeria LNG

Join us and benefit from:

•

Tank owners and operators: Explore the developments of ports and storage availability

•

New! Investing in Infrastructure Summit: The realities of financing the continent’s infrastructure projects

•

New! Operational steam: Building storage tanks, key HSEQ guidelines, prevention not reaction

•

Champagne round tables: Examine operational, trading and strategic issues with peers

•

New! Trading and Strategy streams: Floating storage, refining capacities and landscape, SPMs vs berthing

•

New! Live debates: How to overcome logistical challenges and get oil products to inland countries

Exhibitors

Supporting Partners

Official Publication

Official Media Partner

Official Social Media

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View the agenda and register at www.argusmedia.com/africa-storage TA NK NE WSI NTE R N ATION A L .C OM

64 SHIPPING

AUTUMN EDITION 2016

First LNG vessel through expanded Panama Canal

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he Panama Canal has marked a milestone with the transit of the first-ever liquefied natural gas (LNG) carrier through its expanded locks.

Shell-chartered Maran Gas Apollonia – measuring 289 metres in length and 45 metres in beam – arrived from the Sabine Pass LNG Terminal on the US Gulf Coast, signalling the arrival of the highly-anticipated segment to the waterway.

Panama Canal administrator and CEO, Jorge L. Quijano said: “The transit of the first LNG vessel through the new Panama Canal locks is a milestone in the waterway’s history. LNG trade will greatly benefit from the expansion, and we look forward to welcoming even more LNG vessels through our great waterway. This transit marks the beginning of a new era that will result in cleaner and lower cost energy for the world.”

The expanded Canal can accommodate 90% of the world’s LNG tankers, which will have a major impact

The transit of the first LNG vessel through the new Panama Canal locks is a milestone in the waterway’s history. LNG trade will greatly benefit from the expansion, and we look forward to welcoming even more LNG vessels through our great waterway.

on global LNG flows and offer numerous benefits to shippers.

For example, with the United States poised to become one of the world’s top LNG exporters in the next five years, the Canal will allow vessels departing the US East and Gulf Coast for Asia to enjoy significant reductions in voyage times (up to 22.8 days roundtrip), making US gas

deliveries to major Asian importers very competitive.

Vessels departing the US Gulf Coast for the West Coast of South America will similarly experience generous time savings.

In addition, LNG ships from the production plants in Trinidad and Tobago could head to Chile where LNG is regasified and distributed for energy-producing purposes. For this route, the Expanded Canal provides savings of 6.3 days in transit time compared to the Magellan Strait.

For more information, visit www.micanaldepanama.com SECOND OF SIX ON ORDER

Navig8 takes delivery of second newbuilding chemical tanker from Kitanihon Navig8 Chemical Tankers has taken delivery of the Navig8 Sky, a 25,000 DWT stainless steel chemical tanker, from Kitanihon Shipbuilding.

The Navig8 Sky is the second of six vessels contracted at Kitanihon to be delivered to the company and is the second and last vessel to be part financed under the secured loan facility with Credit Suisse AG announced on June 22, 2016.

The Navig8 Sky will be entered into and operated in Navig8 Group’s Stainless8 commercial pool.

For more information, visit www.navig8chemicaltankers.com

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66 PORTS

Yilport holding secures 50-year concession at Ecuador port

Y

ilport Holding has secured the rights to Puerto Bolívar Port in Machala City, Ecuador.

In the 50-year concession, Yilport has committed to invest $750m in the port.

The deal marks the largest ever Turkish investment in Ecuador. The funds will be invested over five phases and will be used for the development and modernisation of the port, creating Latin America’s largest container terminal with 2,500,000 TEU annual container handling capacity.

Yilport Holding added the 21st port to its global portfolio in its drive towards being ranked among top 10 international port operators by 2025.

Initially, Yilport will invest $230m in the first phase, which will span three years. The dredging work will deepen the draft from 10 to 17 metres, a new, 450-metre long quay will be built and the terminal will be equipped with modern infrastructure and cranes.

AUTUMN EDITION 2016

PORT OF ROTTERDAM

Ternsund the first ship to bunker LNG at Rotterdam The Port of Rotterdam has welcome the first ship to bunker with LNG at the port. The Ternsund vessel arrived at the port to unload naphtha and gas oil at Vopak in the Botlek and then went on to be bunkers with LNG. The fuel tank was cooled to -162 °C in eighteen hours using nitrogen. LNG trucks then drove between the Eemhaven and the Gate terminal on the Maasvlakte to deliver the fuel with the bunkering complete a day later.

Next year, the Port Authority will welcome a new bunker vessel from Shell which will be used to bunker future visiting vessels.

For more information, visit www.portofrotterdam.com

For more information, visit www.yilport.com

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67 AUTUMN EDITION 2016

Khalifa port grows via expansion plans Abu Dhabi Ports, the master developer, operator and manager of the Emirate’s ports and Khalifa Industrial Zone, has announced a major expansion plan at Khalifa Port.

PORTS

T

he expansion at the port will add 1000 metres of quay wall and deepen its main channel and basin to 18 metres from the current 16 metres. The new quay wall will add an additional 600,000 sqm3 for cargo handling.

These measures will ensure the port can accommodate anticipated growth in the short to medium term and handle the world’s largest ships, increasing the competiveness of the Emirate as a logistics and maritime hub while also serving key industries across the UAE. CEO of Abu Dhabi Ports, Captain Mohamed Juma Al Shamisi said: “This ambitious expansion is crucial to ensuring Abu Dhabi remains a global trade and investment hub as well as supporting our local industries. Building on recent growth at Khalifa Port, we are future proofing our operations to ensure we can continue to attract the world’s leading operators to use our world-class facilities that will see Capesize vessels, the largest in the cargo industry, come directly into an Abu Dhabi port for the very first time.

“Over the past few years we have invested in building an integrated, technology enabled platform and physical infrastructure for our customers to become an enabler for key business sectors in line with the Abu Dhabi Plan and Vision 2030.”

Today sees us take this to the next level as a maritime centre and as the gateway to the world’s fastest growing economies.”

For more information, visit www.adporta.ae

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68 PORTS

AUTUMN EDITION 2016

Louisiana Offshore Oil Port Services expansion S E VEN N E W TAN KS TOTALLIN G 2 . 5 MILLIO N BARREL S

Louisiana Offshore Oil Port Services (LOOP), the developer and operator of the US’s only deepwater oil port, has commissioned services on three new above ground crude oil tanks located at its Clovelly Hub in Louisiana. Each tank is capable of accommodating over 355,000 barrels of crude oil for customers at the hub. These tanks utilise the latest technology for environmental and safety compliance. The tanks include electronic level controls, fire detection equipment, advanced security surveillance and around the clock operational monitoring.

W

hen the entire project is completed in April 2017, seven new tanks totalling 2.5 million barrels of capacity will be online. The project, which began in April 2015, has employed hundreds of craftsmen, designers and engineers during a period of constrained employment opportunity in the region.

Tom Shaw, LOOP’s president, said that “the attention to detail and quality found in our regional service providers is truly world class.” This exceptional performance allows the equipment to be placed into service almost three months ahead of schedule to meet market demands. The Deepwater Port Complex was initially developed to facilitate imports of crude oil to United States, but has grown to be an essential landing point for domestically produced energy.

For more information visit, www.loopllc.com

Liverpool takes delivery of container handling fleet Thirty-three new tractor units and trailers have arrived at the Port of Liverpool to serve its existing Royal Seaforth Container Terminal and the new Liverpool2 development.

The fleet of YT222 tractors and Seacom 70 tonne trailers represents an investment of more than £2.6m in container handling equipment and will complement the new semi-automated CRMG cranes for L2 that are currently being commissioned.

Supplied by Terberg and its partner Briggs Equipment, the vehicles will initially focus on integrated operations between the two Liverpool terminals throughout the phased opening of L2.

Head of container operations, Colin Darroch said: “It’s very important that we maximise efficiency throughout the port and its two terminals. After looking across the market we decided on Terberg’s vehicles as meeting our exacting performance and reliability specifications for the job as well as being cost-effective.

We will also be introducing segregated lanes for the tractors and hauliers to further improve traffic flows.”

For more information, visit www.peelports.com

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69 AUTUMN EDITION 2016

PORTS

Jurong Port launches Combi Terminal for multipurpose vessels with containers and general cargo in Singapore Singapore’s Jurong Port has announced the official launch and commencement of operations of its Combi Terminal, tailored to the requirements of multipurpose vessels.

The Combi Terminal is a one-stop terminal for vessels carrying a combination of containers and general cargo. Multipurpose vessels no longer need to call at separate terminals or berths to load or unload different cargo types. Instead, they can berth at the Combi Terminal to concurrently move containers and general cargo using quay cranes efficiently, safely and seamlessly.

Chief executive officer of Jurong Port, Ooi Boon Hoe said: “The establishment of our Combi Terminal is a significant milestone for Jurong Port to become a world-class multipurpose port operator and a one-stop solution provider integrating berth planning, cargo handling, storage and

supporting services. With our Combi Terminal, our customers that carry diverse cargo types on their vessels enjoy the flexibility of shortened ship turnaround time.”

Occupying a total area of 6.6 hectares, the terminal comprises of three dedicated deepwater berths of 575 metres in length with 15.7 metre draft. It is equipped with quay cranes that have been adapted to handle general cargo as well as containers. In addition, mobile harbour cranes can be deployed for the handling of heavy lift cargo.

Attracted by its multi-cargo handling capabilities and expertise, Pilbara Express Lines is initiating a new trade route and commencing a direct liner service between Jurong Port and the Port of

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Dampier in North Western Australia.

Group Director of Transport and Logistics for International Enterprise Singapore, Law Chung Ming said: “The Combi Terminal adds to Singapore’s position as a premier transshipment hub. With this, the new route to the Port of Dampier will expand Singapore’s hinterland for transshipment to the Pilbara region in Australia, enhancing business connectivity, opening up more trade and investment opportunities for companies.”

For more information, visit www.jp.com.sg

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71 AUTUMN EDITION 2016

PORTS

Another daily rail service from the Port of Felixstowe

A

33rd daily rail freight service shipping lines and shippers looking for has been introduced at the quick and sustainable transport solutions.”

Port of Felixstowe in the UK. Managing director of GB Railfreight, Coming just seven John Smith added: “We are delighted weeks after the introduction to be working with both the port of the 32nd daily train, the and terminal operator Newell & new service is operated Wright Transport in delivering this Operated

by GB Railfreight and important new service to the DB

by GB runs between the Cargo site at Rotherham.

Railfreight Port of Felixstowe and “The 33rd daily train Rotherham. represents GB Railfreight’s eighth Commenting on the intermodal flow from the Port of new service, Clemence Cheng, Felixstowe, and our second new service Chief executive officer of the Port of from Felixstowe this past year. With the Felixstowe and managing director of HPH help of our newly ordered Ecofret triple Europe division, said: “The introduction wagons, ultimately this will make the train of the 33rd daily rail service from the 45 wagons in length, it allows us to further Port of Felixstowe so soon after the 32nd increase our capacity at the port and is evidence of the continuing strong across the network. demand for rail. An ever increasing “Following the decline of core number of shippers are looking to commodities such as coal and steel, it benefit by integrating rail into their is important that we continue to look supply chain strategies. for growth opportunities in alternative “The range and frequency of rail markets such as intermodal. The services offered at the port, combined introduction of this new flow highlights with the minimum deviation for the the benefits rail freight traffic brings to our latest generation of mega-vessels, makes intermodal customers, and the intention Felixstowe the logical choice for both of the port and GB Railfreight to ensure

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the long-term competitiveness and viability of the industry.”

Managing director of Newell & Wright Transport, Frank Newell said: “As a well-established container haulier for over 40 years and working with most major shipping lines we could see there was a gap in the market for a rail terminal in the Yorkshire area. Opening/ operating our first rail terminal in Rotherham gives us further opportunities with our customer base.

“We feel that we can now offer a one stop shop from the Port of Felixstowe to final delivery point in the Yorkshire region. This consists of a daily rail service and onward delivery via our own fleet.

We can also offer container repairs, loading and unloading of containers in to our warehouse and storage of both loaded and empty containers. This is an exciting opportunity for Newell & Wright Transport and we look forward to the future working with the Port of Felixstowe, GBRF and DB Cargo.”

For more information, visit www.portoffelixstowe.co.uk

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73 AUTUMN EDITION 2016

Extended collaboration with Shell

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azpromneft Marine Bunker, operator of the Gazprom Neft bunkering business, has commenced fuel supplies to Shell International Trading and Shipping Company (STASCO) vessels in the Black Sea region. The first delivery of 1,480 tonnes of mazut (heavy heating oil) was made by Gazpromneft Omsk bunkering barge delivering to the 115,000-tonne-deadweight Iasonas tanker at the port of Tuapse.

The agreement with STASCO, will see the delivery of bunkering fuel throughout the North West region, with geographic range potentially being further extended. Initial fuel supplies were made at the Port of Primorsk, with cooperation subsequently extended to

include a vetting inspection undertaken by specialists from Shell International Shipping, of the Gazpromneft Omsk, following which the vessel was approved to fulfil orders from STASCO. CEO of Gazpromneft Marine Bunker, Andrey Vasilyev said: “The extension of our collaboration with STASCO is a major confirmation of the perceived quality of the fuels we supply, and the services delivered on the part of our partners. We plan to further consolidate our leading position in the Russian bunkering market, developing cooperation with major Russian and international bunkering companies.”

For more information, visit www.gazprom-neft.com

PORTS

Ports of Auckland and Napier Port announce strategic alliance The Ports of Auckland and Napier have announced a strategic alliance which will provide operational, economic, sustainability and community benefits.

Ports of Auckland chief executive, Tony Gibson said: “Ports of Auckland and Napier Port are the gateways to two of the largest North Island provincial economies with significant growth and demands on infrastructure.”

The partnership will allow Napier and Auckland to work together to find ways to optimise services for freight customers and achieve further scale and efficiencies in the supply chain.

It will prompt even greater competitive contestability and resilience in New Zealand’s supply chain to help lower costs to exporters and importers.

Tony Gibson added: “There is a natural fit between Ports of Auckland and Napier Port. We share a similar way of working, common customers and supply chain opportunities and have similar ownership structures so that’s a great base to work from.”

Napier Port chief executive, Garth Cowie, said the alliance also creates an opportunity to collaborate, share best practice and innovate in technology, health and safety and sustainability practices, areas where both ports are seeking to advance further.

“Napier Port’s vision is to be central New Zealand’s leading provider of port and logistics solutions. This alliance fits with the natural flow of freight in the North Island, based on ports close to demand centres and Auckland’s weighting towards imports and our strong export base.

“Both operators are committed to growing our talent so we will be developing a joint talent pool, driving skills development and opportunities like staff exchanges where it makes sense,” he added.

For more information, visit www.poal.co.nz

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74 RAIL

AUTUMN EDITION 2016

Greenbrier closes investment in Brazil with stake in railcar castings and component manufacturing business

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he Greenbrier Companies has announced that it has closed on the previously announced acquisition of a 19.5% ownership stake in Amsted-Maxion Cruzeiro for $10m.

Based in Cruzeiro, Brazil, Amsted-Maxion Cruzeiro is a manufacturer of castings and components for railcars and other heavy equipment.

In addition to Greenbrier, Amsted-Maxion Cruzeiro is owned by Amsted Rail Brasil and Iochpe-Maxion each holding 40.25% of the company.

Amsted-Maxion Cruzeiro will use Greenbrier’s investment to pay down outstanding debt and position the company for future growth.

Amsted-Maxion Cruzeiro is also the co-owner with Greenbrier of Amsted-Maxion Equipamentos E Serviços Ferroviários the Brazilian railcar manufacturer based in Hortolândia.

Greenbrier currently owns 19.5% of Greenbrier-Maxion while Amsted-Maxion Cruzeiro holds the remaining 80.5% equity interest. Upon exercising the purchase options it holds, Greenbrier can potentially

Patriot Rail Company appoints new vice president and chief safety officer

own up to a 60% direct equity interest in Greenbrier-Maxion. Based on its current equity position in Amsted-Maxion Cruzeiro, Greenbrier directly and indirectly owns 35% of the outstanding equity of Greenbrier-Maxion.

Amsted-Maxion Cruzeiro serves a broad range of transport equipment markets throughout Latin America, and provides railcar castings and components to Greenbrier-Maxion. The company also supplies components for heavy equipment used in agriculture, mining and other industrial applications.

Chairman and CEO, William A. Furman said: “We are pleased with the progress made at Greenbrier-Maxion over the past year together with our partners Amsted and Iochpe.

“Global markets are important for Greenbrier and a significant part of our business strategy. I am pleased to expand our partnership in Brazil with Amsted and Iochpe beyond railcar manufacturing into castings and components for railcars and other heavy equipment.”

Patriot Rail Company has appointment of Matthew Reddell as Vice President and Chief Safety Officer. He will be a part of the senior leadership team reporting to John E. Fenton, President and Chief Executive Officer.

Reddell, a 15-year veteran of the rail industry, will serve as Patriot Rail’s senior safety executive charged with leading all safety efforts throughout the company’s diverse rail services holdings.

John E Fenton said: “From day one, this management team established safety as our cornerstone value. While our safety performance continues to improve, we won’t be satisfied with anything less than an accident-free workplace. Matthew is a highly regarded leader in our industry, and has built a well-deserved reputation as a zealous guardian of employee safety.

He brings a keen understanding of what it takes to deliver top results the right way – by creating a just culture where people willingly engage in the mission. I know he will use those abilities to engage the entire workforce as we pursue our goal of an absolute culture of safety.”

For more information, visit www.gbrx.com

For more information, visit www.patriotrail.com

MEMBER OF THE YEAR 2016

LRIW Now accepting nominations for 2016 Member of the Year The League of Railway Industry Women (LRIW) is seeking nominations for its ‘Outstanding Member of the Year’ award.

Each year, the organisation recognises an outstanding member, either corporate or individual, who has contributed their time and talents to improving the mission of LRIW. Nomination criteria include: a passion for the rail industry; dedication

to leadership and support for the personal and professional growth of women in the rail industry; continued volunteer commitment to LRIW over the past year; corporate or individual efforts and success in the recruitment and retention of members and commitment to community service.

Nominations will be accepted until August 31, 2016 and the nomination form can be downloaded from the LRIW’s website.

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For more information visit www.lriw.org

75 AUTUMN EDITION 2016

American Railcar Industries reports second quarter results American Railcar Industries, Inc. has reported its second quarter 2016 financial results.

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resident and CEO, Jeff Hollister said: “We believe our company is prepared to face the headwinds the industry is experiencing following record high demand for railcars over the last couple of years. Our experienced management team and employees are accustomed to the cyclical nature of the industry, and we remain close to our customers, adapting our business to meet their ever-evolving needs.” Total consolidated revenues were $150.5m for the second quarter of 2016, a decrease of 22% when compared to $192.0 m for the same period in 2015.

This decrease was primarily driven by decreased revenues in the

manufacturing segment, partially offset by increased revenues in the railcar leasing and railcar services segments.

Manufacturing revenues were $97.5m for the second quarter of 2016, a decrease of 32% compared to the same period in 2015.

This decrease was primarily driven by fewer railcar shipments for direct sale with a higher mix of hopper railcars sold, which generally have lower average selling prices than tank railcars due to less material and labor content, and more competitive pricing on both hopper and tank railcars.

Given the decrease in tank railcar demand and a shift in production to a larger mix of specialty railcars, both hopper and tank

RAIL

railcar shipments have decreased.

During the second quarter of 2016, ARI shipped 932 direct sale railcars and 85 railcars built for the company’s lease fleet compared to 1,378 direct sale railcars and 1,019 railcars built for the lease fleet during the same period in 2015.

Railcars built for the lease fleet represented 8% of ARI’s railcar shipments during the second quarter of 2016 compared to 43% for the same period in 2015.

Manufacturing revenues for the second quarter of 2016 exclude $9.3 million of estimated revenues related to railcars built for the company’s lease fleet compared to $123.7m for the same period in 2015.

Railcar leasing revenues were $33.2m for the second quarter of 2016, an increase of 18% over the $28.2m for the comparable period in 2015.

For full details, visit www.americanrailcar.com

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76 RAIL

AUTUMN EDITION 2016

Wabtec acquires Gerken Group

Watco to Operate Sandusky, Ohio Terminal Watco Transloading has established a license agreement with Norfolk Southern Corporation (NS) to operate the newly established Norfolk Southern TBT Terminal (Thoroughbred Bulk Terminal) located in Sandusky, Ohio.

The Ohio terminal is situated between Toledo and Cleveland along the banks of Lake Erie. The NS is leveraging the existing infrastructure of the former Triple Crown Services facility to allow Watco and NS to drive new incremental transload business, and further establish the Watco/NS TBT Terminal presence in the Ohio Region.

The newly acquired operations at the Sandusky Terminal will add to the growing list of Watco operated TBT Terminals in the Ohio Region. Watco currently operates three other existing TBT Terminals in the greater Ohio Region: Columbus, Ohio; Euclid, Ohio; and Willis, Michigan.

Thirty fully paved railcar spots have been allocated for Watco’s use at the terminal with laydown space available for ongoing storage of customer related products. There is ample room for expansion at the site should business levels warrant the need to increase operations. Watco will begin transload operations at Sandusky in July 2016.

Watco vice president marketing & sales, Marc Massoglia said: “We are very excited to begin operations in Sandusky, and are extremely grateful for having been given the opportunity to expand our presence in the NS TBT Network.”

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The Wabtec Corporation has acquired Gerken Group a manufacturer of specialty carbon and graphite products for rail and other industrial applications.

Wabtec’s president and chief executive officer, Raymond T. Betler said: “Gerken’s range of specialty products expands our capabilities with existing customers and in new markets.

The company will also be a good strategic fit with other Wabtec divisions, including Fandstan and Fulmer, and with our friction businesses.”

Founded more than 80 years ago, Gerken manufactures a variety of carbon brushes and strips, graphite and related products used in railway traction, power generation and other industrial markets.

Wabtec Corporation is a global provider of value-added, technology-based products and services for rail and other industrial markets.

Through its subsidiaries, the company manufactures a range of products for locomotives, freight cars and passenger transit vehicles.

For more information, visit www.wabtec.com

Watco will be focused on transloading a number of different commodities, including but not limited to the following: chemicals, plastics, forest products, steel products, and various agricultural related products.

Watco marketing manager, Ryan Krull said: “Our growing presence in the Ohio region enables Watco the ability to expand on our existing customer relationships, as well as establish new lasting relationships with the surrounding communities.”

For more information, visit www.watcocompanies.com

A European leader in railcars leasing • About 45 000 railcars out of which 10 000 for transportation of oil, gas and chemical products • Over 60 years of experience and technical expertise

www.ermewa.com

78 RAIL

AUTUMN EDITION 2016

New direct intermodal rail service to connect Port of Wilmington and Charlotte O N LY D R E C T S E RV I C E

CSX Corporation has announced the debut of the new Queen City Express, an intermodal rail service between the Port of Wilmington and CSX’s intermodal terminal in Charlotte.

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orth Carolina Governor Pat McCrory attended the announcement and said: “The Queen City Express will be the only direct freight rail service into the Greater Charlotte area from a port in North Carolina. The introduction of this new service will facilitate the efficient, cost-effective movement of goods between the global marketplace and one of the most significant economic centres in the southeastern United States.”

CSX will eventually provide direct access from the Port of Wilmington to the Carolina Connector intermodal terminal in Edgecombe County. The facility is expected to create 1,500 jobs throughout North Carolina.

Transportation Secretary Nick Tennyson said: “The introduction of the Queen City Express fulfills a critical part of Governor McCrory’s 25-year vision for transportation in North Carolina by strengthening freight movement throughout the state. Enhancing North Carolina’s rail service will decrease transportation costs for businesses and provide numerous statewide economic and environmental benefits.”

The Carolina Connector intermodal terminal, along with the Queen City Express, will lower transportation costs for businesses while taking trucks off the road.

CSX chairman and chief executive Officer, Michael J. Ward said: “CSX is proud to partner with the State of North Carolina to bring the Carolina Connector to Eastern TA NK NE WSI NTE R N ATION A L .C OM

North Carolina which will provide cheaper, faster and more environmentally-friendly connections for North Carolina’s businesses and ports to domestic and international markets. This critical infrastructure project will create jobs and spur economic development in the region, positioning Eastern North Carolina as a transportation and logistics hub in the south.”

NC Ports Authority executive director Paul J. Cozza. “The return of intermodal rail to the Port of Wilmington expands our reach into an under-served market,” said “The Queen City Express will provide premier rail service over competing ports for existing and future container customers.”

For more information, visit www.ncports.com

79 AUTUMN EDITION 2016

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G&W ethanol plans

with a number of additional safety features, including thicker steel, head shields, thermal protection and top fitting protection.

Marc Garneau said: “Accelerating the phase out of legacy DOT-111 tank cars in crude oil services is another crucial step in improving the safety of communities along our railway lines.

By removing the least crash resistant tank cars in service, we continue to modernise how dangerous goods are shipped in Canada and further protect Canadians and their families who live near Canada’s rail network.”

Genesee & Wyoming’s subsidiary, Arkansas Midland Railroad Company, will offer the first ethanol unit train solution for the North Little Rock and surrounding gasoline-blending markets, serving the JP Energy terminal, which is the largest terminal at North Little Rock’s tank farm complex.

Unit trains, which are able to handle up to 108 railcars, will be unloaded directly to JP Energy’s ethanol storage tanks on premises for onsite blending or direct outbound truck loading.

Prior to this, the local ethanol market was served only by truck deliveries and single-car rail shipments.

“AKMD is proud to bring this unique and efficient delivery solution to JP Energy and its customers,” Dewayne Swindall, president of AKMD, said. “It demonstrates the railroad’s ability to be a major transportation partner to surrounding industry and create logistics options that can lower costs for both area businesses and their customers.”

AKMD is a 114-mile short line railroad serving the Hot Springs and Little Rock areas. It interchanges with BNSF and Union Pacific railroads.

Commodities shipped include aluminum, forest products, aggregates and energy products. The railroad was acquired by G&W in 2015.

“Partnering with AKMD has enabled us to provide our customers with the most cost effective ethanol supply possible in Central Arkansas and beyond,” Cory Willis, senior vice president of terminals and distribution at JP Energy Partners, said. “By locating the unit train offload facilities directly adjacent to our terminal, we’re able to reduce unnecessary truck traffic and product transfers, further enhancing the efficiency and safety of our terminal operations.”

With the EPA’s mandate to increase the amount of biofuel mixed into the fuel supply, demand for ethanol blending is expected to increase, making a strong market for ethanol use in North Little Rock.

For more information, visit www.tc.gc.ca

For more information visit www.gwrr.com

CANADIAN RAILROAD

Faster timeline for phasing out DOT-111 tank cars In 2015, more than 146,000 carloads of crude oil were shipped throughout Canada by rail. To protect Canadians and those who live along the country’s rail corridors, Marc Garneau, Minister of Transport, has issued Protective Direction 38, which accelerates the phasing out of DOT-111 tank cars for crude oil service to November 1, 2016.

The accelerated timeline will phase out unjacketed legacy DOT-111 tank cars six months early and legacy jacketed DOT-111 cars 16 months early.

Legacy DOT-111 tank cars are considered to be the least crash resistant tank cars still being used in crude oil service. They will be replaced by tank cars such as the TC-117, which is designed

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Tank Storage & Logistics Autumn Edition 2016 TA N K N E W S I N T E R N AT I O N A L : TA N K S T O R A G E & L O G I S T I C S A U T U M N E D I T I O N

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