The Port of Rotterdam announced that it has signed an agreement with Shtandart TT – a JV between Summa Group (Russia) and VTTI (NL) –re construction of a crude oil storage terminal in Rotterdam with capacity of 3m cbm. The terminal will be a hub terminal for trade in crude oil and oil products (so not for the JV's own use). Construction will start in 2013, and the terminal will be commissioned in 2015.
A new competitor for part of Vopak's local footprint
A 3m cbm terminal is big and increases competition, which may affect future pricing power of some of Vopak's Rotterdam and Amsterdam terminals, namely those that store crude oil and oil products. We know that a large part of Vopak's capacity in those regions relates to strategic oil and oil products, so the new entrant will compete with part of Vopak's local capacity.
The new entrant could be slightly negative for mid-term pricing power. For the time being, however, this has no impact on our short term estimates, which we leave unchanged.