June 15, 2006 [Stolt-Nielsen S.A.] - Stolt-Nielsen S.A. announced today that its wholly owned subsidiary, Stolt-Nielsen Transportation Group (SNTG), signed two joint venture partnership agreements with the Lingang Harbor Affairs Company in Tianjin, China for the previously announced long-term lease of prime waterfront property upon which a state-of-the-art chemical and oil products terminal is to be built by SNTG.
The terms of the partnership agreements establish two joint venture companies, one that will own the jetty and dock facilities, and one that will own the terminal for bulk-liquid storage. SNTG will own 40% of the Tianjin Stolthaven Jetty Co. Ltd and 65% of the Tianjin Stolthaven Terminal Co. Ltd.
The initial phase of development is anticipated to include the construction of 47 storage tanks, with a total capacity of 185,400 cubic meters, and a jetty at a total estimated investment of $58 million. SNTG’s share of the investment is anticipated to be $23 million.
The terminal’s first jetty, which is already under construction, is expected to be operational by August 2006. The terminal is expected to be operational in 2007.
“The Tianjin-Beijing region is one of the most exciting and dynamic areas in China,” said Walter E. Wattenbergh, Managing Director of SNTG’s Stolthaven Terminals division. “This new terminal facility will serve as an important gateway to the region, where economic growth and industrial expansion are driving increased demand for petroleum products and petrochemical feedstock. The terminal will also serve as a distribution hub for products and chemicals.”
The terminal is located in the Lingang Development Zone, which will ultimately occupy an area of 80 square kilometers. In comparison, the Port of Rotterdam occupies approximately 100 square kilometers. Wattenbergh noted that the new terminal in Tianjin, along with other strategic actions by SNTG, including the recent acquisition of 50% ownership in Oiltanking GmbH’s terminal in Antwerp, underscore SNTG’s commitment to expanding its worldwide terminal network to provide increased service and value to its customers.
SNTG, with headquarters in Rotterdam, established a representative office in Shanghai in 1994 and currently has offices in Shenzen, Shanghai and Tianjin.
