The name of the new JV is Vopak Industrial Infrastructure Americas, LLC, which will have a diversified set of infrastructure assets, in three locations, with each situated alongside an active Dow production complex.
Vopak Industrial Infrastructure Americas will enter into long-term service agreements with Dow, for storage and infrastructure services. Dow expects Vopak's terminal expertise and capabilities will deliver additional operational efficiencies and opportunities for growth.
The total capacity of the three terminals is 852 000 m3. The Freeport, Texas, terminal has 53 tanks (140 000 m3) for storage of chemicals. The St. Charles, Louisiana, terminal has 73 total tanks (409 000 m3) for storage of chemicals. The Plaquemine, Louisiana, terminal has 30 tanks (303 000 m3) for storage of chemicals and refined products. The involved assets include 16.4 hectares of expansion land, 36 vessel berths, multiple pipeline connections, rail and truck racks.
The transaction is expected to be closed before year end 2020, subject to customary closing conditions.
"We are excited for the opportunity to serve Dow via these industrial terminals in a safe, sustainable and efficient way. We are dedicated to contributing to the long term success of Dow's US Gulf Coast business," said Eelco Hoekstra, Chairman of the Executive Board and CEO of Royal Vopak. "This unique expansion opportunity, in which we partner with the leading global investment experts of BlackRock, fits perfectly into Vopak's growth strategy for industrial terminals. We are very proud of our expertise and long track record of storing vital products with care for our customers and our drive to continue to invest."
“We are extremely proud to partner with Vopak, a best-in-class terminal operator, to serve as a steward for this critical infrastructure,” said Mark Florian, Managing Director and Head of BlackRock’s Global Energy & Power Infrastructure team. “This investment is aligned with our strategy to deliver value for our investors by investing in high-quality and critical operating infrastructure assets that are supported by long-term contracts to provide cash flow visibility and partnering with industry leaders who are like-minded to help grow these businesses while maintaining a strong culture of safety."
Read the article online at: https://www.tanksterminals.com/terminals/14092020/vopak-and-blackrock-to-acquire-three-industrial-us-gulf-coast-terminals-from-dow/