ODFJELL HAS NINE OPERATIONAL, PART OWNED TANK TERMINALS THROUGH ITS 51% OWNED ODFJELL TERMINALS BV JOINT VENTURE, AT STRATEGIC LOCATIONS AROUND THE WORLD. IN ADDITION, WE HAVE ONE TERMINAL THAT IS MECHANICALLY COMPLETE AND UNDERGOING PERMITTING IN TIANJIN IN CHINA, AND TWO TERMINAL PROJECTS UNDER DEVELOPMENT IN CHINA AT CHANGXING ISLAND AND FUJIAN.

Odfjell Terminals also has a co-operation agreement with 13 tank terminals in South America, plus one in Canada. These tank terminals are partly owned by related parties. In total, our tank terminal network has more than 1,000 employees and 5.5 million cubic meters of storage space in 1,472 tanks in 24 ports around the world. Together with our shipping business, this makes Odfjell Terminals one of the world’s leaders for the transportation and storage of bulk liquids.

We have a strategy of expanding our tank terminal activities, at key locations, for the storage of liquid bulk petrochemicals, refined petroleum products, bio-fuels and vegetable oils along major shipping lanes. In addition to the storage business, the Rotterdam tank terminal also has a petroleum industrial distillation (PID) service that offers toll distillation for the petrochemical and petroleum industry. We focus not only on locations in mature markets, but also increasingly on ports which are growing in importance in selected rapidly developing hubs.

In addition to being profitable investments on a standalone basis, tank terminals also offer cargo-consolidation programmes designed to reduce time in port and fuel consumption in port for our ships. Commercially, the combination of shipping and tank terminals puts Odfjell in a unique position to offer our customers increased safety, reliability, product stewardship, efficiency and improved arrival accuracy. We are experiencing a steady increase in demand, for cargo consolidation, as a result of the industry’s ongoing pursuit of efficiency improvements along the entire supply chain.

Odfjell Terminals (Rotterdam) has in 2015 expanded its toll distillation capacity from 750,000 tonnes to 1,800,000 tonnes annually to meet customer demands. A large part of the new capacity becoming Odfjell Terminals (Rotterdam) has in 2015 expanded its toll distillation capacity from 750,000 tonnes to 1,800,000 tonnes annually to meet customer demands. A large part of the new capacity becoming available has been contracted for a 12 month period with potential for further extension.

Odfjell Terminals (Houston) (OTH) completed the construction of the new tank bay, Bay 10, on 1 October 2015. The bay consists of nine 1,900 cbm carbon steel liquid tanks designed to API 650F standards. Total capacity of Bay 10 is 17,100 cbm. All tanks were 100% commercially committed the same day as they were commissioned.

In 2012 we started the construction of our new terminal in the Bohai Bay region near Tianjin, China through our joint venture with Tianjin Economic-Technological Development Area. The terminal is ready for operation, but the explosion in the Tianjin old harbour in 2015 is continuing to further delay the process of obtaining the necessary operational permits.

In line with Odfjell Terminals’ strategy, further terminal projects across the world are under evaluation.

ODFJELL TERMINALS (ROTTERDAM) (OTR), THE NETHERLANDS

Located at the heart of Rotterdam´s harbour, Botlek, the most important chemical distribution centre in Europe, OTR has a total gross storage capacity of about 1,636,135 cbm in 284 storage tanks. Current capacity approved for use is 1,219,800 cbm of which 964,034 are commercially available. The tank terminal stores both chemicals and mineral oil products.

In addition to the storage business, the Rotterdam tank terminal also has a petroleum industrial distillation (PID) service that offers toll distillation for the petrochemical and petroleum industry. The PID controls a large share of the independent product distillation market in Northwest Europe, and operates four distillation columns with a combined total annual distillation capacity that has been expanded to 1,800,000 tonnes during 2015.

The Odfjell Terminals Maritiem (OTM) site is located almost directly opposite OTR, on the south bank of Rotterdam’s main shipping artery Nieuwe Waterweg, surrounded by the port’s largest global-scale refineries. It is connected to OTR via pipeline, and is used to conduct transshipments.

Overall, the Rotterdam tank terminal enjoys an extensive infrastructure, with five berths for deep-sea tankers, seven positions for short-sea vessels and 14 positions for barges. The terminal also has extensive facilities for handling trucks, ISO containers and rail cars. The site has its own wastewater treatment plant, which also serves third parties.

The OTR/OTM facilities have expansion possibilities for up to 480,000 cbm of new tank capacity.

In 2015, OTR continued to implement its long-term business plan. The upgrading of the facility to meet the new industry PGS29 standards is according to schedule. The distillation facility represents the new opportunities in the petroleum market and has concluded several term contracts that represent historically high throughput.

NOORD NATIE ODFJELL TERMINALS (NNOT), BELGIUM

NNOT, in which Odfjell Terminals acquired a 25% share in 2012, offers a unique combination of storage and related value-added services for several types of liquids. The terminal has a strategic location in the port of Antwerp with easy access to the sea, inland waterways, roads and railways.

With 240 tanks and a total capacity of 348,499 cbm, NNOT provides storage and related activities for chemicals, liquids for human or animal consumption, mineral oils, base oil, oleochemicals and biofuels.

NNOT owns additional land adjacent to the existing terminal and has plans for further expansion of up to 105,000 cbm of tank capacity, and is exploring more land capacity.

ODFJELL TERMINALS (HOUSTON) (OTH), USA

Houston is the major international hub for import and export of chemicals to and from the USA. OTH is also the hub for Odfjell’s global and regional trades to and from the US Gulf. The realisation of synergies is always a priority and the tank terminal has multiple shared customers with Odfjell Tankers, which demonstrates the benefit of cargo consolidation and expedited shipment for all parties.

The tank terminal in Houston was completed by Odfjell in 1983, and has since expanded to 119 tanks with a total capacity of 379,982 cbm at the end of 2015. The tank terminal boasts one of the largest stainless steel storage capacities of any independent tank terminal in the world, in total 113,180 cbm. The facility has the only propylene export facility in the US, and is modifying spheres to handle various LPGs.

The facilities’ unused land and existing infrastructure still offer scope for further expansion, with potential additional storage capacity of around 126,000 cbm in the existing area.

ODFJELL TERMINALS (CHARLESTON) (OTC), USA

Charleston is located near the major shipping lanes on the US East Coast. The port is one of the best maintained ports on the US East Coast, and dredged every two years by the US Army Corps of Engineers.

The terminal started operations in early 2014, and has nine tanks with a total capacity of 79,243 cbm at the end of 2015. The Phase 2 expansion, with potential for additional storage capacity up to 80,757cbm, is being analysed for further development.

ODFJELL TERMINALS (DALIAN) (OTD), CHINA

OTD started operation in 1998, but was relocated from its original site to Dalian New Port in Xingang in 2007. The tank terminal’s capacity is 51 tanks with 119,750 cbm storage capacity. The stainless steel capacity is 18,350 cbm. The tank terminal has four berths for sea-going tankers with up to 50,000 dwt capacity. The location is well connected by rail to the vast hinterland of Northeast China, and the tank terminal can manage up to 120 rail wagons concurrently. It has 5.7 hectares of land available for expansion, with storage capacity of around 30,000 cbm.

Odfjell Terminals holds 50% of the shares in Odfjell Terminals (Dalian), while Dalian Port Company Ltd (PDA) is the other shareholder in the company. Odfjell and PDA have also jointly established a training academy for terminal operators for operations in China.

ODFJELL TERMINALS (JIANGYIN) (OTJ), CHINA

OTJ is located in the Jiangyin Economic Development Zone on the south bank of the Yangtze River, approximately 150 km west of Shanghai and 12 hours by ship upriver from the estuary. The 99,800 cbm terminal became operational in late 2007 and has excellent facilities for handling a wide range of petrochemicals from ships, barges and trucks. OTJ comprises 22 tanks. The stainless steel capacity is 30,000 cbm. The terminal has the largest jetty on the Yangtze River at its disposal. In total there are eight berths for the handling of deep-sea tankers, coasters or barges. OTJ can accommodate up to 50,000 dwt ships. It has 16.6 hectares of land available for potential expansion, with storage capacity of around 101,000 cbm.

ODFJELL TERMINALS (KOREA) (OTK), KOREA

OTK is strategically located in Onsan, the most important petrochemical distribution and transshipment hub in Northeast Asia. The tank terminal entered operation in 2002 and has 85 tanks, with a total storage capacity of 313,710 cbm.

The most sophisticated terminal in Onsan, OTK has a 15,860 cbm stainless steel capacity. The tank terminal owns and operates six berths, with user rights to another two berths, that can handle vessels of up to 80,000 dwt. OTK also has modern drumming facilities for break bulk operations. The tank terminal has 3.1 hectares of land available, with potential for future expansion storage capacity of around 70,000 cbm.

Odfjell Terminals holds 50% of the shares, while local partner Korea Petrochemical Ind. Co. Ltd (KPIC) owns 43.60%. The remaining 6.40% shareholding is held by two other Korean companies.

ODFJELL NANGANG TERMINALS (TIANJIN) (ONTT), CHINA

ONTT is a joint venture project between Odfjell Terminals Asia and Tianjin Nangang Industrial Zone Port Co. Ltd. The terminal is strategically located at Tianjin Port, on Bohai Bay, in the Nangang Industrial Zone and is the nearest port to the production areas of the North and Northwest China hinterland and the link to Middle/ West Asia. It is also the closest port to Beijing.

Nangang Industrial Zone (NIZ) is a green field development, and planned by the Chinese Central Government to be the largest petrochemical zone in Northeast China. It is expected to accommodate the production of over 200 different petrochemicals. ONTT will service customers within NIZ and customers using the zone for local distribution or export and will have connections to road and rail, as well as having a large marine infrastructure.

Phase 1 will start operation in 2016 and will have three ship docks and 18 tanks with a total storage volume of 137,800 cbm. The terminal has available, for future expansion, storage capacity of around 202,200 cbm.

ODFJELL CHANGXING TERMINALS (DALIAN) (OTCX), CHINA

OTCX is a joint venture project between Odfjell Terminals Asia (50%), Dalian Port (PDA) Company Ltd (30%) and Dalian Changxing Island Administrative Commission (CXI Committee) (20%). The potential terminal will be strategically located at the Changxing Island, which is a major national petrochemical industry base. Total land area of OTCX is about 52 hectares, reclaimed from the sea.

OTCX project will be developed in phases depending on the progress of the development of the industry zone. First phase will be two berths only (no storage tanks). We are currently in the process of obtaining permit approvals. First phase construction is scheduled to start in the beginning of 2017, and be completed by the end of 2018.

ODFJELL TERMINALS (QUANZHOU) (OTQ) FUJIAN, CHINA

In June 2013, we signed an agreement to enter into a joint venture with the Founder Group, to become 50/50 partners, for the development of a petrochemical tank terminal in Quanzhou, Fujian Province, China. Odfjell Terminals acquired, from the Founder Group, a 50% equity share in the existing Fujian Fangtong Terminals Co Ltd., including land and an existing jetty. The objective is to construct a future tank terminal which we will manage and operate.

OILTANKING ODFJELL TERMINAL SINGAPORE (OOTS), SINGAPORE

As one of the busiest ports in the world, Singapore plays a major role in the distribution of petroleum and petrochemicals in Southeast Asia. OOTS is located on Jurong Island, where most of Singapore’s petrochemical industry is concentrated.

The tank terminal became operational in 2001. The total current capacity is 402,000 cbm in 82 tanks and spheres for petrochemical gases, varying from 800 cbm to 18,000 cbm. The stainless steel capacity is 13,520 cbm. OOTS has three deep-sea jetties. The berths can accommodate double-banking and board-to-board cargo transfers, as well as delivery of bunker fuels from shore tanks. The tank terminal also performs operational management and has access to two additional berths. The terminal has land available for further expansions. The tank terminal is a 50/50 joint venture between Odfjell Terminals and Oiltanking.

OILTANKING ODFJELL TERMINAL & CO (OOTO), OMAN

Sohar Industrial Port is located in Oman, outside the Strait of Hormuz, and only a few hours drive from the petrochemical industry in United Arab Emirates and Saudi Arabia. The port is home to a refinery and several global-scale petrochemical complexes. This development is being driven by the desire of the Sultanate of Oman to exploit the nation’s gas reserves and create a strong 'value-added process economy', as opposed to an energy export economy.

OOTO has exclusive rights to manage six liquid berths and provides bulk liquid storage within Sohar Industrial Port. Based on the requirements of the captive industry in Sohar and a growing regional market for the storage of chemicals and mineral oils, OOTO has expanded over the past five years into a terminal with 66 tanks and overall capacity of 1,294,780 cbm. Odfjell Terminals holds a 29.75% shareholding in OOTO. The company is jointly managed by Odfjell and Oiltanking.

EXIR CHEMICAL TERMINAL (ECT), IRAN

Exir Chemical Terminal is a joint venture between Odfjell SE (35%), Oiltanking (35%) and Nuian, a private Iranian investor (30%), and is the first independent tank terminal for bulk liquid chemicals in Iran.

ECT is strategically situated in the Petrochemical Special Economic Zone (PETZONE) in the port of Bandar Imam Khomeini. The terminal is connected by pipelines to jetties in the PETZONE, and can accommodate vessels up to 45,000 dwt. The terminal consists of 18 tanks, in total 22,000 cbm, and has been operational since January 2010.

The tank terminals, partly owned by related parties, first became operational in Buenos Aires in 1969. Today, they consist of 13 tank terminals spread along the coasts of Brazil, Argentina, Chile and Peru, with a strong market position for chemical storage in the region. These terminals are partly privately owned by the Odfjell family together with other investors and has its operational headquarters in Sao Paulo.

The eight Brazilian tank terminals are located in Santos, Rio Grande, Triunfo, Sao Luis, Teresina, Ladario and Palmas. Argentina is home to two tank terminals, one in Buenos Aires and the other, a state-of-the-art terminal in Campana, about 80 km upriver from Buenos Aires. The Chilean tank terminals are located in San Antonio and Mejillones, and the Peruvian terminal in Callao. In addition there is one terminal in Quebec, Canada.

These extensive tank terminal activities in South America provide an excellent complement to Odfjell’s frequent and traditionally strong shipping activities within the region. Where practical, shipping and storage services are marketed from shared offices, facilitating logistical solutions as comprehensive as required by our customers.

* Reflection of actual historical Odfjell ownership share