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Mar 1, 2004 12:00 PM

Royal Vopak has reached agreement with the major suppliers of oil products in the Northern Territory of Australia and the territorial government to build a joint industry oil products terminal. Vopak will invest AUS$ 55 million (EUR 33 million) in the 113,000-cbm facility, which will be located at the new East Arm Port of Darwin. The terminal will become operational in August 2005, at which time the oil companies will vacate their present facilities.

The new Vopak terminal and the closure of the old terminals will allow the Darwin government to proceed with redevelopment of the old port area. The oil majors have entered into long-term agreements with Vopak for the use of the terminal to secure supply to their markets. This development whereby the major oil companies have jointly entered into an agreement to outsource their storage demands to an independent service company is the first in its kind in Australia, according to Vopak officials.

The new terminal will ship mainly via tank trucks but will also have a rail siding. This enables delivery to the mining industry in the northern region and via the new north-south rail infrastructure to the southern states. Vopak has opportunities to expand the terminal in the future to support market growth.