Kaneb Terminals BV, a subsidiary of Valero L.P. (NYSE:VLI), signed a contract on November 28, 2006 with BV Aannemingsbedrijf H. Verwater & Zonen for the construction of 264,000 cubic meters of petroleum storage at its Amsterdam terminal.
Construction of the additional petroleum storage, suitable for gasoline and distillate, is expected to begin in January 2007, and the final phase of this project is expected to be completed by the end of 2007. The terminal currently operates 158,000 cubic meters for fuel oil, gas oil and bunker blending.
After this expansion, the terminal will have a capacity of 424,000 cubic meters. Additionally, there are plans to construct another 44,000 cubic meters for clean products and 142,000 cubic meters for fuel oil, resulting in a total terminal capacity of 610,000 cubic meters.
A new marine dock and two barge berths are also expected to be constructed, giving the facility a total of two marine berths and five barge berths. The new marine dock will be able to accept 80,000 dead-weight tons (dwt) ships, the maximum capacity the Port of Amsterdam can handle, and one of the barge berths will be able to take mega-barges up to 10,000 dwt. Additional marine space will be available to expand as the business develops.
“This is a significant project for us and will increase the size of the facility by a considerable amount,” said Jan Oerlemans, General Manager of Kaneb Terminals BV. “The construction of petroleum tanks for clean products will also allow for gasoline blending, which is a niche business for the Port of Amsterdam.”
“This project fits well with our strategy of expanding key terminals worldwide,” said Curt Anastasio, Valero L.P.’s president and CEO. “We are investing approximately $250 million to expand several of our terminals in major growth markets, and we expect several of these projects to begin contributing to our earnings in mid to late 2007.”
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