March 01 2012

STORAGE TERMINALS

TANKER SHIPPING

Stealthgas has reported net income for 2011 of $8.5m, down from $11.1m in 2010. The 2011 result includes losses incurred on interest rate and foreign exchange derivatives of $2.9m as well as a $5.7m loss on the sale of vessels. Absent non-recurring items, the company recorded a $3.2m increase in net income to $11.6m. There has been a slight increase in timecharter equivalent rates, from $7,195 per day in fourth quarter 2010 to $7,404 per day in the same period 2011. "As expected we have seen chartering activity pick up during the winter months," says CEO Harry Vafias. "Our strategic focus on this niche LPG segment has allowed us to report solid results in contrast to the continued weakness in most shipping segments."

PT Berlian Laju Tanker (BLT) has revealed details of its default on debt instruments. In a statement issued this week to the Indonesian Stock Exchange, it identified six debt instruments on which no payment has been made this month. The amount unpaid comes to some $44.1m and IDR 17.5bn ($1.94m). "We are still working with our financial advisor and will provide an update with respect to the Company's restructuring of its indebtedness in due course," the company says.

US tank barge operator Commercial Barge Line brought in transport revenues of $721.1m in 2011, a 14% increase compared to the segment's 2010 revenues. "Improvements in asset utilisation enabled the company to achieve such results while operating a barge fleet that was 5% smaller than the prior year," says Commercial Barge. "On a fuel-neutral basis, transport revenues increased 5.5% for the year, driven by strength across most commodities, with particularly robust demand experienced in the company's petroleum and chemical business. As we look forward, we believe that the demand for our transport services will remain solid in 2012. Increasing domestic crude oil production and historically low natural gas prices are providing an environment that we believe will continue to drive positive market conditions for our liquids business."

Toh-Sei Kaiun has sold its 2005-built, 20,000 dwt stainless steel chemical tanker Oak Galaxy to Wilmar International for $19m. Lloyd's List refers to the price as "dismally low", being 27% below the $26m paid by Odfjell for the similar Holly Galaxy this past November.

Brokers report that the Besiktas shipyard in Turkey has picked up an order for a 9,000 m³ ethylene tanker from Gas and Heat. Delivery is scheduled for 2013. No price was reported. Sovcomflot is also said to have ordered two 20,600 m³ ice-class semi-refrigerated LPG tankers from Hyundai Mipo for fourth quarter 2013 delivery; the two ships are booked on 15-year timecharters to Sibur and are prices at about $50m per ship.

LNG

The acquisition of the AP Moller-Maersk LNG tanker fleet by a joint venture involving Teekay LNG and Marubeni Corp was expected to close by today. Since the announcement of the deal in October 2011, the majority owners of two vessels in which Maersk held a minority share have exercised their rights to acquire the Maersk interests, meaning that the deal now only involves six vessels. Timecharters on two of those six have also been extended, in once case (Maersk Meridian) by 18 years. The deal is now valued at some $1.3bn, of which 80% has been funded by secured debt.

A joint venture between Thiess and EV LNG Australia - EVT - has won the contract to build LNG and condensate storage tanks for Chevron's Wheatstone project in Western Australia. EVT will handle EPC for two 150,000 m³ full containment LNG tanks and two 120,000 m³ condensate storage tanks. Thiess is also involved in civil works on the Wheatstone project and is also handling similar engineering work for Chevron on the Gorgon LNG project.

Norwegian investment bank Pareto this week said that if all LNG projects currently in development come onstream - and that is a big 'if' - then the LNG tanker fleet will need to grow by another 352 ships by 2020. LNG trade amounted to 326bn m³ last year but could hit 781bn m³ in 2020, with new export sites in Australia expected to be instrumental in much of the growth. Japan's imports have increased sharply, largely as a result of earthquake damage to power plants last year, but China's continued thirst for gas is providing a more long-term demand pull.

INTERMODAL TRANSPORT

Kerry-ITS has opened its fifth tank container depot. The new facility in Kandla, India, opened for business today. Kerry-ITS Terminal (Kandla) Pte Ltd is located within 8 km of Kandla port in Gujarat, offering direct ocean access to international markets. The 11,200 m² facility will focus on providing a broad range of ISO tank cleaning and repair services for the tank lessors, operators and end-users. "Demand is growing from our customers around the Asia Pacific regions for a broad range of ISO tank maintenance services and this new facility demonstrates our commitment in meeting such demand." says Joab Ang, general manager, India. Kerry-ITS plans to install a Robogrind machine at the site to undertake interior tank shell corrosion treatment, and will have the facility audited by @TCO as an approved cleaning station and depot.

RAIL TRANSPORT

Kinder Morgan Energy Partners (KMP) and Martin Midstream Partners have formed a joint venture, Pecos Valley Producer Services, through which they will develop a multi-commodity rail terminal in Pecos, Texas. KMP says that the new terminal will serve the growing oil and natural gas industries in the Permian Basin. The facility will be constructed and operated by a subsidiary of shortline railroad group Watco Companies. KMP holds a preferred equity position in Watco. "The terminal will offer a variety of services to producers in the Permian Basin including crude oil hauling, storage, transloading and marketing," says KMP. "It will also provide producers access to light Louisiana sweet crude oil markets." The first stage of the terminal is expected to be completed and operational by May 2012.

ROAD TRANSPORT

UK logistics provider Clugston Distribution announces that it is expanding into the fuels distribution market. The company says that it will initially operate with four new 44-tonne, six-compartment road tankers that it has purchased from manufacturer Cobo. Clugston plans to add two further LAG-manufactured road tankers are being supplied by Williams Tanker Services. All four of the six-compartment units are fitted with pumps for discharge to above ground storage tanks. All the new tankers will be on the road by the end of April, says Clugston. "Growth into the fuels market is part of Clugston Distribution's strategic vision to diversify operational services into new market sectors, and one in which we intend to grow our presence year on year," says the company.

US road tanker operator Dupré Logistics is to be recognised for safety by chemical company Chevron Phillips at an upcoming company event. Chevron Phillips chief executive Peter Cella is slated to honour Dupré with his company's Contractor Safety Excellence Award at the CPChem Contractor Safety Forum on May 31, Dupré reports. "The award recognises contractor companies that have achieved outstanding safety performance while working at CPChem facilities during the 2011 award year," says Dupré. "At Dupré, our leadership and safety teams evaluate our performance and pursue continuous safety innovation. To be recognised by our clients means that our programmes are working from their perspective as well as ours."

Canada-headquartered tank trailer operator Trimac Transportation brought in consolidated revenue of C$87m in the fourth quarter of 2011, a 15.4% increase compared to the same period of last year, according to the company's latest financial statement. Trimac's total revenue for the full year of 2011 stands at C$332.1m, a 13.7% increase compared to revenue of C$292.2m brought in during 2010. "We are very pleased with the results," says the company. "Increased activity in the oil and gas sector lead to increased volumes in various commodities."

CHEMICAL DISTRIBUTION

Brenntag has entered into a distribution agreement with OTI Greentech that will see it selling the latter firm's "innovative products for cleaning oil impurities" in Germany. Brenntag has been blending and formulating liquid products on OTI's behalf since 2007, with the inclusion of the new products marking "a new form of partnership" for the two companies. Meanwhile, Brachem Acquisition, Brenntag's major shareholder, has now placed 7m Brenntag shares worth €577.5m with institutional investors in an accelerated bookbuilding process led by Goldman Sachs. Accordingly, the company's free float has increased from nearly 73% to 86.3%.

Univar's new legal entity in Romania is now fully operational. Based in Bucharest, it will trade under the name Univar South-East Europe. "Romania is a country with enormous growth opportunities for our business," says Balazs Kiss, Univar's country manager, Romania, Czech Republic, Slovakia and Hungary. "Industry and agriculture contribute nearly half the country's GDP, which plays very well into Univar's portfolio. Also, the domestic chemicals market is currently quite fragmented, so customers will benefit from Univar's presence, can trust in our global supply reliability and depend on our market insight so that they have the benefit of a global network with local-level expertise."

France-headquartered Norbert Dentressangle has posted a 2011 net profit of €63.3m, an increase of 11% on the €57.2m achieved the previous year. At the same time, consolidated revenues grew by 26% from €2.8bn to €3.6bn. "In 2011 Norbert Dentressangle took a decisive step in its development by maintaining a high rate of growth and strengthening its international profile with the acquisitions of TDG and APC Beijing International," says CEO François Bertreau. "The economic environment has been more subdued since the end of 2011, but the group is strong enough to withstand this and to adapt," he continues.

Azelis has signed an agreement with Merck for the distribution of cosmetic raw materials in Denmark, Sweden, Finland and Norway. Under the terms of the deal, Azelis will be responsible for local customer support, applications technology and logistics, with Merck providing Azelis with R&D, training and regulatory support. "We are looking forward to cooperating with Merck," says Patrik Edström, managing director for Azelis Nordic. "Our product range for the cosmetics industry is optimally complemented by the range of products offered by Merck. We can offer our customers individualised support thanks to our own Azelis technical application cosmetic laboratories in Moers, Germany and Hertford, UK."

Singapore-listed CWT has closed 2011 with a net income of S$57.1m ($45.6m), down 68% from the S$179m achieved in 2010, from revenues totalling S$2.6bn, themselves up 245 % over the same period from S$747.2m. "In fiscal year 2011, the group responded well to the increase in broad-based logistics and warehousing demand, made strategic investments which expanded our core competencies and global footprints and accelerated our strategic growth path whilst continuing to strengthen our capital structure," says CEO Loi Pok Yen. "Moving forward, we remain focused on improving key business fundamentals to position CWT for future growth."

Lankem Chemicals, Sri Lanka's largest importer of solvents, has opened a new chemical and thinner plant in Sapugaskanda, Lanka Business Today reports. The LKR 120m ($1m) facility boasts underground petrochemical storage tanks and interconnected blending and drumming lines designed to meet international standards. According to Ruwan T Weerasinghe, director of parent firm Lankem Ceylon, the plant's first phase includes a 370 m² secure warehouse and a drum yard able to handle in excess of 5,000 drums at once. "With this new facility, we have also created a new standard for the industry in Sri Lanka," he says.

Thailand's Union Petrochemical Public Company (UKEM) has announced a 2011 net profit of Baht 151.3m ($5m), an increase of 84% on the previous year. At the same time, revenue increased 27.6% to Baht 3.3bn as a result of the company increasing both its capacity and product portfolio. At the same time, gross profit rose by 53.8% to Baht 438.2 million because, it says, the "company can administrate the cost of capital efficiently".

Lanxess has appointed Melrob as its new Perkalink 900 distributor across the UK and Ireland. "Perkalink 900 is one of the leading products to avoid the risk of reversion during the vulcanisation process and thus improve the service life of tyres as well as other technical rubber products," Melrob says. "It also complements Lanxess' existing specialties portfolio, which includes products such as the anti-reversion agent Vulcuren. We are in the process of establishing stock at our warehouse in Hull to ensure supply continuity of this speciality material," it continues.

INDUSTRIAL PACKAGING

Greif has announced a first-quarter net income of $23.9m, down 42.3% from the $41.4m posted this time last year. Meanwhile, its net sales increased over the same period from $943.8m to $992.7m. "Continued weakness in the industrial sector and market pressure, especially in Europe, were challenging issues through the first quarter 2012 for the Rigid Industrial Packaging and Services and Flexible Products and Services segments," says president and CEO David B Fischer. "There are initial signs of improvement in recent sales volumes. Contingency actions that we implemented beginning in the second half of 2011 are helping to mitigate the impact of these market conditions."

CDF Europe and DS Smith Packaging have unveiled the Lube Cube. Developed in conjunction with Fuchs Lubricants (UK), the Lube Cube features a 20-litre CDF Cheertainer contained within a corrugated die-cut outer impregnated with a weatherproof sealant. "The new system gives better in-house storage when empty as there is less warehousing required as well as fewer trucks required to bring the packs in," says Michael Watson, CDF Europe's sales and marketing director. "Fuchs is sending out more packs per pallet and therefore more per truck. In addition their customers are delighted as disposal is one-tenth of the previous cost."

Matcon will hold a free Lean Manufacturing Open Day at its UK headquarters on Thursday, March 8 "to showcase the latest in lean manufacturing solutions for the powder processing industries". Attendees will have the opportunity to see real working configurations, from raw materials filling to finished goods business-to-business packing. "A special showcase," Matcon says, "will be two Flexi-Batch IBC Systems demonstrating the automatic formulation of recipe batches, including full tracking and traceability of materials for all or part of the manufacturing process with the use of advanced RFID technology." To register visit here.

Australia's Global Pumps has expanded its product range to include Techniflo eccentric screw drum pumps. Designed to handle viscous liquids, "these universal, powerful and very portable pumps can be used for pumping from small containers, 200-litre drums and right up to 1000-litre IBCs", the company says. The units can be supplied in a variety of lengths and driven by either air or electric motors, including 240V and three-phase motors as required. "These revolutionary pumps will transform your decanting procedures and batching processes," the company asserts.

EQUIPMENT & SERVICES

US-based ChemSW has released a new white paper, Quantifying the financial benefits of chemical inventory management using CISPro®. The paper documents the results of a financial benefit study ChemSW conducted of its CISPro chemical inventory management system to determine how technology has helped customers streamline associated processes and costs. "The information that the survey data reveals has been both expected and surprising," says president Brian Stafford. "Expected because we knew that our customers enjoyed cost savings as a result of implementing CISPro to manage their chemicals; surprising because we learned more about the actual time that many organisations are spending performing chemical management activities."

PEOPLE

Robert Uggla is to relinquish his position as managing director of Broström on May 1 and take up another senior post within AP Moller-Maersk as CEO of the towage and salvage firm Svitzer. He replaces Jesper T Lok, who has recently been appointed CEO of Denmark's national train operator, DSB.

Robert Erni has been named as Panalpina's new CFO while Ferdinand Kurt has been selected to become the company's new regional CEO for the Americas. "Robert Erni knows the finances of a supply chain solutions company like ours inside out. He will push our organisation's performance as we go after sustainable, profitable growth. I am delighted to have him as a new sparring partner," says CEO Monika Ribar. "Ferdinand Kurt is a great personality with an extensive skill set. He brings his experience and a strong track record in achieving substantial growth to the table," she continues.

Jim Schultz has been named chief operating officer of US-based chemical distributor DNP International. Before joining the company he was general manager of Brenntag's global products division. Working directly with DNP's president and CEO, David Ji, Schultz will manage and oversee operations, sales and marketing, administration, regulatory affairs and purchasing while also being responsible for "the alignment and prioritisation of company investments and ensuring sales and operational excellence" across the company. "His experience and ability will help align DNP's world-class sourcing and sales with industry-leading operational practices to drive and extend DNP's market leadership," Ji says.

Gerry Paulson has been named as ChemLogix's new vice-president, finance and administrative services. In this role, the company says, he will manage all corporate accounting practices with responsibility for the development and administration of budgets, fiscal analysis and planning, audit functions, human resources and other financial operations pertinent to business stability and growth. "Gerry's background is ideally suited not only to provide financial oversight to ChemLogix, but also to support ChemLogix's goal of delivering sustained value to our customers' freight management processes," says president and CEO Steve Hamilton.

Meanwhile, Marie Holst has joined ChemLogix as manager, international sales. Having previously worked for Leman, Dachser and AN Deringer, she will "focus on expanding the company's market reach for international transportation and logistics services to mid- and large-sized companies in all industries throughout North America" while working with clients "in developing customised logistics solutions that optimise supply chain operations while addressing current market conditions", the company says. "Marie," Hamilton notes, "has an extensive background in developing international logistics solutions that will serve ChemLogix well as we support new and prospective customers with logistics solutions that improve their global freight management processes."

Scott McFann has joined US chemical distributor EW Kaufmann as the company's new field sales representative in the central/northern Ohio region. McFann has more than 20 years' sales experience in the manufacturing and chemical distribution industries having begun his career in 1991 with Hamilton Welding Company as a sales representative selling to the industrial chemical and oil and gas sectors. "His most recent position was as an account manager for Univar USA, selling into a variety of markets, including industrial chemicals, biofuels, fine ingredients, ink, paint, pharmaceutical and waste water treatment," the company says.