The total investment for Vopak and partners in expansion projects involves capital expenditure of some EUR 1.9 billion, of which Vopak’s total remaining cash spend will be some EUR 0.5 billion. Some significant expansion projects like Fujairah (UAE), Vopak Terminal Amsterdam Westpoort phase 2 (the Netherlands), and Eemshaven (the Netherlands) will be commissioned during 2012.

Main announcements second half year 2011

• In July 2011, Vopak entered the fast growing Indian market through the acquisition of 100% of the shares in CRL Terminals Pvt. Ltd in the Port of Kandla from a domestic operator. The terminal is one of India’s largest independent storage facilities for chemicals and vegetable oils and consists of two sites with a total capacity of 261,600 cbm.
• In August 2011, Vopak announced the completion of the sale of the Buckeye Class B units and Buckeye LP units. The total monetized value of the sale of all units, including dividend received, amounts to USD 101 million. The sale of Vopak’s 20% equity stake in BORCO (Bahamas) generated total cash proceeds of USD 291 million. The total after-tax profit on the sale of the 20% equity stake in BORCO, including the discount and selling expenses on the Buckeye Class B units, amounts to EUR 106.9 million. This is reported as an exceptional result in the first half year 2011.
• In September 2011, the joint venture of Vopak (60%) and Enagas (40%) successfully completed the acquisition of the LNG storage and regasification terminal in Altamira (Mexico). The jointly controlled entity has acquired 100% of the shares in the terminal from Shell (50%), Total (25%) and Mitsui & Co LTD. (25%) for USD 408 million.
• In September 2011, Gate terminal was officially opened by Her Majesty Queen Beatrix of the Netherlands. Gate terminal, a joint venture between Vopak (42,5%) and Nederlandse Gasunie (42,5%), is located on the Maasvlakte in Rotterdam and is the first LNG import terminal in the Netherlands. The terminal will have an initial annual throughput capacity of 12 billion cubic meters per year (bcma) and can be increased to 16 bcma in the future.
• In October 2011, Vopak Terminal Amsterdam Westpoort (the Netherlands) was officially opened. The terminal has an initial storage capacity of 620,000 cbm and facilitates the growing demand for storage capacity for oil products. After completion of additional storage capacity of 570,000 cbm in phases up to the second quarter of 2012, the storage capacity will increase to nearly 1.2 million cbm.
• In December 2011, in addition to the regular annual pension contribution, Vopak made an additional contribution in the amount of EUR 50 million to the Dutch pension fund. EUR 40 million of this contribution is to strengthen the financial position of the pension fund and the remaining EUR 10 million for granting an increase of 1.5% to the pensions of participants, former employees, and pensioners as at 1 January 2012.

Storage capacity developments

Vopak expects the market for storage and handling of oil products to remain robust, and an encouraging market for chemical storage services. The mixed developments in the market for storage and handling of biofuels are expected to continue throughout 2012. The market for storage and regasification of LNG is expected to remain solid.

In February 2011, Vopak sold its 20% equity stake in BORCO (Bahamas), resulting in a reduction of the total storage capacity by 3.4 million cbm. Furthermore, the Ipswich terminal (UK) was partly returned to the port authorities and partly sold. During 2011, new capacity was commissioned at MOT (the Netherlands), Europoort (the Netherlands), Barcelona (Spain), Vlaardingen (the Netherlands), Caojing (China) and Aratu (Brazil). These expansions increased the capacity in total by 769,600 cbm in 2011. The capacity further increased in 2011 by 1,721,600 cbm due to the acquisitions of the Altamira LNG terminal in Mexico and the Kandla Terminal in India and the opening of the new Vopak Terminal Amsterdam Westpoort phase 1 and Gate terminal, both in the Netherlands.

Since the end of 2010 our worldwide capacity decreased by 1.0 million cbm from 28.8 million cbm to 27.8 million cbm by the end of December 2011. For the joint ventures, 100% of the storage capacity is included.

In 2011, various new projects were announced. The new terminal in Tianjin (China) with an initial chemical storage capacity of 95,300 cbm will be expanded with 240,000 cbm of additional capacity dedicated to the storage of LPG. On 18 January 2012 the chemical storage capacity of this terminal was commissioned, the additional capacity for the storage of LPG is expected to be delivered in May 2013.

Furthermore three new terminals for the storage of oil products will be built in respectively Eemshaven (the Netherlands), Hainan (China), and Pengerang (Malaysia). New expansions at existing terminals are under construction in, among others, Fujairah (UAE), Vopak Terminal Amsterdam Westpoort phase 2 (the Netherlands), Europoort (Rotterdam, the Netherlands), and Banyan (Singapore). All projects under construction at year-end 2011 will add 6.0 million cbm of storage capacity in the period up to and including 2014.

A large part of the capacity growth is related to meeting storage demand resulting from the positive oil and gas market developments. Vopak’s focus is on growing in selected strategic locations. Although Vopak’s estimated total market share in global independent tank storage decreased from 11.1% in 2010 to 10.6% in 2011, based on the announced expansions, Vopak is well positioned in strategic key locations.

Developments and studies for growth

Vopak’s strategy is aimed at growth, operational excellence and customer leadership. In companies analysis of growth opportunities, Vopak explores different expansion possibilities. Growth plans consist of capacity expansions in existing locations, but company also looks for locations where its’ services would be needed in the future and for new business concepts which fit the strategy. This is often supported by keen interest from customers. Therefore, the company is currently investigating various expansion opportunities, both at existing terminals and at new locations.

In addition to the projects under construction, these opportunities, among others, include possibilities for oil storage terminals in Bahia Las Minas (Panama) and on Bioko Island (Equatorial Guinea), a terminal in Perth Amboy (New Jersey, US), a LPG terminal in West-Java (Indonesia), and a LNG terminal in Fos-sur-Mer (France).