Mr Al Junaidy said that “We are looking to bring our capacity to 6 million cubic meters by the end of 2010. That means we will have to invest another USD 250 million to USD 300 million in the storage business.”
He said that despite the economic downturn the petroleum product storage business remains robust because it is viewed as essential infrastructure. The group’s facilities are located in the UAE, Singapore, Saudi Arabia, South Korea, Djibouti and Morocco.
Mr Al Junaidy said that “We intend to grow in trading hubs, followed by shipping corridors and import locations.”
The expansion projects include Saudi Arabia and Fujairah. The company expects the Indonesia project to materialize soon. Planned capacity is about 200,000 cubic meters to 250,000 cubic meters.
He said that “We are in the process of getting all the necessary approvals to actually begin the investments. Hopefully, we will be able to break ground towards the end of 2009.”
The company has seen a slowdown in new projects because of the current economic situation. It aims to fund new facilities using its own cash surplus and bank borrowings.