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Growing Market for ISO Tank Containers in the GCC Melroy Nazareth

Growing Market for ISO Tank Containers in the GCC · Growing Market for ISO Tank Containers in the GCC ... • Shipper-owned ISO tank containers with hazardous chemicals ... • Insufficient

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Page 1: Growing Market for ISO Tank Containers in the GCC · Growing Market for ISO Tank Containers in the GCC ... • Shipper-owned ISO tank containers with hazardous chemicals ... • Insufficient

Growing Market for ISO Tank

Containers in the GCC

Melroy Nazareth

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Stolt-Nielsen Limited

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SUPPORTING DOWNSTREAM DEVELOPMENT: Creating integrated Supply Chain Linkages

Stolt’s Business: A Leading Provider of Bulk Liquid

Storage & Transportation

Stolt Tankers Stolthaven Terminals Stolt Tank Containers

• Operates one of the world’s largest & most sophisticated fleets.

• Over a 150 ships and barges.• Equipped with heating &

cooling systems.• Can safely handle virtually

any liquid cargo.

• Global network of terminals.• Provides high quality storage

& distribution.• Works within an

environment of assured quality, safety and environmental protection.

• Door-to-door transportation services for Bulk-liquid chemicals.

• Large fleet with over 33000 tanks.

• Services include specialised tanks.

• Food-grade products.

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SUPPORTING DOWNSTREAM DEVELOPMENT: Creating integrated Supply Chain Linkages

Stolt’s Business: Additional Specialties

Stolt Sea Farm Stolt Bitumen Services Stolt-Nielsen Gas

• world’s most advanced high-tech aquaculture companies.

• Production of premium fish species.

• Focus on complex biologics. • Sophisticated, high-tech

cultivation.

• Bulk bitumen shipping and product supply.

• Leasing of bitumen containers (20 ft. bulk liquid container) for carriage & storage of bitumen.

• Transport for liquefied petroleum gas (LPG).

• Fleet of eight VLGCs (current).• more on order.

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INTRODUCTION

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SUPPORTING DOWNSTREAM DEVELOPMENT: Creating integrated Supply Chain Linkages

History of the Tank Container

1964: First conceptualised & designed by Bob Fossey.

1966: first commercial production occurred.

1967: first tank container ISO standards developed.

Early 1970s: container design stabilised in current form and production in quantity established.

1970-2009: production mostly in Europe.

2010-to-present: production mainly in China and South Africa.

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SUPPORTING DOWNSTREAM DEVELOPMENT: Creating integrated Supply Chain Linkages

Latest Design of an ISO Tank Container

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GROWING DEMANDFOR 20’ TANK CONTAINERS

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SUPPORTING DOWNSTREAM DEVELOPMENT: Creating integrated Supply Chain Linkages

Source : Petrochemical update

Profile : Chemical Production in the Gulf Area

*Lowest-cost region for petrochemical production globally.

* Exports 80% of output to 80+ countries world-wide.

* GCC production expected to grow 5% annually through 2020.

* Production expected to jump from 147 MT (2014) to 198.6 MT by 2020.

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SUPPORTING DOWNSTREAM DEVELOPMENT: Creating integrated Supply Chain Linkages

Global Tank Fleet by Year

Source : ITCO

2013 2014 2015

TOTAL OPERATORS 228460 265550 305700

TOTAL LESSORS 150400 176500 195000

SHIPPERS & OTHERS 94800 111200 120120

ESTIMATED MANUFACTURE 39700 42620 48200

DISPOSALS 0 -1000 -5000

ESTIMATED GRAND TOTAL 338260 394400 444220

ESTIMATED PERCENTAGE

GROWTH 11.7 12 12.6

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SUPPORTING DOWNSTREAM DEVELOPMENT: Creating integrated Supply Chain Linkages

Features

Photo here

SAFE

RELIABLE

VERSATILE

FLEXIBLE

ENVIRONMENTALLY FRIENDLY

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SUPPORTING DOWNSTREAM DEVELOPMENT: Creating integrated Supply Chain Linkages

Tank Container Cleaning Depots

Photo here

Middle East: UAE• 2 in Dubai (with a 3rd coming on-line soon)

Saudi Arabia:• 2 in Dammam• 2 in Jeddah• 1 in Jubail

South Africa:• 3 in Durban• 3 in Cape Town• 2 in Johannesburg• 1 in Port Elizabeth

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SUPPORTING DOWNSTREAM DEVELOPMENT: Creating integrated Supply Chain Linkages

Advantages of Tank Containers vs. Drums & Flexi bags

Handling• Load/off-load is quick and fast.• Reduced need for manpower.

Safety• Reduced risk of injuries from product spillage and/or vapors.• Tanks specifically designed to contain hazardous products:

o Thick shello Protected by frameo Pressure/vacuum relief valveso Insulation

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SUPPORTING DOWNSTREAM DEVELOPMENT: Creating integrated Supply Chain Linkages

Advantages of Tank Containers vs. Drums & Flexi bags

Loss of Product • Drums and IBCs can be subject to frequent damage during handling or shipment. • Residue in drums & IBCs can add up to substantial amounts very quickly.

Contamination• Stainless steel tanks cleaned -- and certified as clean -- prior to each load. • Drums / IBCs not cleanable.

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SUPPORTING DOWNSTREAM DEVELOPMENT: Creating integrated Supply Chain Linkages

Advantages of Tank Containers vs. Drums & Flexi bags

Cost• Save on purchase of new or reconditioned drums/IBC’s.• Save on palletization.• Reduce labor and handling costs to customers.• Reduced overall Landing Cost to end customers.

Storage• Tank containers excellent for mid-term storage.

Capacity• Significant capacity per shipment advantage over either drums or IBCs :• Tank vs. Drums: 6,960 liters (42%) higher capacity per shipment (saves 1 of every 3

shipments)• Tanks vs. IBCs: 3,880 liters (20%) higher capacity per shipment (saves 1 of every 5 shipments)

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SUPPORTING DOWNSTREAM DEVELOPMENT: Creating integrated Supply Chain Linkages

Potential Pitfalls with Tanks• Lack of tank handling expertise can lead to damages, loss of product, contamination &

accidents.

• Loading tank container over 95% can lead to leakage.

• Shipper-owned ISO tank containers with hazardous chemicals first to be shut out (in full-ship scenario).

• Insufficient number of tank cleaning depots (especially in East & West Africa) increases the costs for transporting empty dirty tanks for cleaning.

• Shipper and consignees resistance to change.

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The Journey of a Tank Container

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Tank Container movie – 3 .55 minutes

The Journey of a Tank Container

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SUPPORTING DOWNSTREAM DEVELOPMENT: Creating integrated Supply Chain Linkages

SUMMARY

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Thank You!

www.gpca.org.ae