Political uncertainty in this region has grown after the Ukrainian crisis. This has resulted in a new reality for tank storage companies operating in this region. Guaranteed flows of Russian oil products through the Baltic States became more and more unreliable as Russia choses to use its own infrastructure. Belarus has now become the dominant partner for these companies.

Looking at the different oil products that are stored at VNT, Mr. Pantzlaff sees gasoil deliveries declining as these are diverted to Russian ports. Naphtha deliveries are estimated to remain stable. Gasoline deliveries will be the oil product group that should offer a chance, although competition for these barrels will become fierce.

Besides these internal factors, these companies also should look at external factors that should not be underestimated. For example legislation, costs of transportation and port ability.

For our company that is situated in the heartland of the ARA, it was interesting to learn that the Eastern Baltic region has similar factors that influence the storage market. It also has its own regional specific characteristics that need another approach. One thing for sure is, knowing your strengths, competitive landscape and tradeflows will remain the key factor in a successful business strategy.

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