chemical products storage and handling update · key global game changers that will affect the...

Chemical products storage and handling update

Capital Markets Day, 11 November 2011

Ismail Mahmud, Global Director Chemicals

Forward-looking statement

This presentation contains statements of a forward-looking nature, based on currently available plans

and forecasts. Given the dynamics of the markets and the environments of the 31 countries in which

Vopak provides logistics services, the company cannot guarantee the accuracy and completeness of

such statements.

Unforeseen circumstances include, but are not limited to, exceptional income and expense items,

unexpected economic, political and foreign exchange developments, and possible changes to IFRS

reporting rules.

Statements of a forward-looking nature issued by the company must always be assessed in the

context of the events, risks and uncertainties of the markets and environments in which Vopak

operates. These factors could lead to actual results being materially different from those expected.

Capital Markets Day 11 November 20112


Contents

Introduction

Global Chemical Industry

World of Vopak’s Chemical Business

Industrial Terminal Model

The petrochemical industry uses a wide range of feedstocks to produce intermediate chemicals and polymers

Feedstocks

Methane

Ethane

LPG

Gas Oil

Naphtha

(Ethylene,

Propylene)

(Benzene, Xylenes)

BasicPetrochemicals

Methanol

Olefins

Aromatics

(Acetic acid,

formaldehyde)

Intermediates

(Styrene, ACN,

Ethylene Glycol)

(Phenol, PTA,

Styrene)

Intermediates

Intermediates

(PE, PP)

Polymers

Polymers

(Polystyrene, AB

PET,PVC)

Packaging

Textiles

Construction

Fuels

Automotive

Coatings

End Uses

Intermediates

Polymers

Electronics


Growth of 16% in global Ethylene capacity by 2016Expected increase of 24 million tons versus 150 million tons today

1822

0

25

50

Others

+4


Global Chemicals Summary Perspective

Developing World Expands

� More Capacity� Higher Imports

(Raw materials – Resins)

Developed World Matures

� Lower Demand� Higher Imports

(Finished Goods)

New Gulf (ME)

Advantage Remains

� Higher Exports� Diverse Capacity

Renewed

Gulf (GOM)

Reemerges

� Wide Oil vs. Gas Gap� Higher Exports


Key global game changers that will affect the future of the chemical industryBy 2020, 7 out of 10 largest chemical companies will be based in BICME countries

BICME will dominate M&A activity

Shale gas

“Green Ethylene

ME downstream integration

Rationalisation

Strong growth of Indian market

Asian demand to double by 2020

MTO/CTO Projects


Growing demand for storage servicesby the chemicals industry• Increasing demand for storage

• Robust growth in developing markets

• Construction of new petrochemical

complexes in Asia and Middle East

Source: CMAI0

10.000

20.000

30.000

40.000

50.000

60.000

70.000

199

0

199

1

199

2

199

3

199

4

199

5

199

6

199

7

199

8

199

9

200

0

200

1

200

2

200

3

200

4

200

5

200

6

200

7

200

8

200

9

201

0

World trade in major liquid marketsMillion Metric Tons

Methanol

MEG

Styrene

Phenol

Cumene

Benzene

ParaxyleneMixedXylenes


Strategic logistic functions of tank terminals

Vital link for incoming and outgoing

flows of chemicals

Example

Rotterdam Botlek South

Storage of products that are

exported or transferred to end users

Example

Vopak Terminal Ningbo

Complete integration with the

production process

Example

Sakra Terminal in Singapore


Type of customers and their characteristics

TradersRegional/Local Players

• Global, but limited

scope

• Focus on regional

markets

• Japanese, large local

players

• Global, but selected

hub locations

• European, American,

Japanese

• Globally structured

• Regional/Global

functions

• DOW, BASF,

Exxonmobil, Shell,

LyondellBasell, etc.

Chemical Majors

Consolidated GroupsNational Oil/Chemical Companies

• Growing• Access to feedstock• Access to markets• Access to capital• Dominating their positions• Brazilian, Indian, Chinese,

Middle Eastern (BICME)

• MNC’s, NCC’s,

Traders


Vopak well positioned to serve evolving global product flows of chemicals

Terminal(s) at hub location

Terminal

Industrial terminals

Vopak offers storage capacity for chemicals at over 50 terminals, global market share of independent tank storage market ~21%


Capital

Market

Day 11

Novemb

12

Vopak Caojing Terminal

Industrial terminal – Shanghai Caojing


Royal Vopak

Westerlaan 10 Tel: +31 10 4002911

3016 CK Rotterdam Fax: +31 10 4139829

The Netherlands www.vopak.com

chemical products storage and handling update · key global game changers that will affect the...

Documents