operational excellence in bulk logistics - platts · expansion works ftl, fujairah, uae ... –easy...

Operational Excellence in Bulk Logistics

Arjen Schneiders, January 2013

•VTTI, favorite gateway to energy markets

•ETT, a typical VTTI asset

•Operational Excellence in Bulk Logistics

January 2013

VTTI, FAVORITE GATEWAY TO

ENERGY MARKETS

January 2013

OVERVIEW

• Founded in 2006

• One of the world’s fastest growing independent energy storage businesses

• With a total capacity of 8.6 million cubic meters

We build own and operate liquid terminals in strategic locations around the world.

OUR FOUNDATION

One of the world’s largest independent energy traders

Revenues of $297 billion in 2011

Over 6 million barrels per day traded

Leading Malaysian based shipping company

More than 130 owned and in-chartered vessels

Combined tonnage of over than 13 million deadweight tonnes.

We stand on the firmest foundations, jointly owned by:

Through this partnership, we enjoy a unique insight into the needs of traders and the

demands of global energy transportation.

OUR TERMINAL AND PROJECT PORTFOLIO

We own and operate

13 Terminals in strategic locations

Located across

5 continents

With a combined capacity of

8.634.000 m3


CURRENT TERMINALS

ETT, Rotterdam, The Netherlands 1,100,000 m3

ETA, Amsterdam, The Netherlands 1,382,000 m3

VNT, Ventspils, Latvia 1,195,000 m3

BNK, Kaliningrad, Russia 49,000 m3

VTTI FTL, United Arab Emirates 1,180,000 m3

VTT Port Qasim, Pakistan 34,000 m3

Vitco, Zarate, Argentina 180,000 m3

Seaport Canaveral, Florida, USA 450,000 m3

Navgas, Lagos, Nigeria 16,000 m3

ATPC, Antwerp, Belgium 952,000 m3

ATB, Johore, Malaysia 890,000 m3

VTTI Kenya, Mombasa, Kenya 111,000 m3

Petrotank, Germany 1,095,000 m3

Total Capacity 8,634,000 m3

PLANNED PROJECTS

ATB expansion, Johore, Malaysia 220,000 m3

VTTI FTL expansion, UAE 1,000,000 m3

VTTV, Vasiliko, Cyprus 643,000 m3

TEW, Rotterdam, The Netherlands 3,000,000 m3

VTTI Algeciras, Los Barrios, Spain 540,000 m3

Vitco expansion, Zarate, Argentina 35,000 m3

Total Future Capacity 5,438,000 m3


Logistics HUB: Hub terminals act as central turning points for blending, make and break

bulk in centrally located ports with logistic advantages for all players involved. The prime

examples of HUB terminals in the VTTI network are ETT in Rotterdam, FRCL in UAE and

ATB in Malaysia.

Industrial Terminals: industrial terminals are integrated terminals in production facility,

whereby the terminal serves as the receiving point for feedstock and finished products.

Within VTTI FRCL in UAE and ATPC in Antwerp are examples of industrial terminals.

Import & export Terminals: These are the terminals that serve as the entry- or exit point

in a country for bulk oil flows. In the current VTTI portfolio VNT and BNK are examples as

export terminals and Canaveral as an import terminal

Distribution Terminals: These are terminals that are located in close proximity to

sizeable consumer markets and allow the distribution of oil to the final bulk customers.

These terminals will typically act as wholesale depots and will predominantly be located

along the inland rivers or connected to pipelines. In the current VTTI portfolio Petrotank is

an example.

OUR STORY SO FAR

Expansion programme

Vitco, Zarate,

Argentina

Greenfield construction

ATB, Tanjun Bin,

Johore, Malaysia

Expansion works

FTL, Fujairah, UAE

Greenfield construction

Seaport Canaveral,

Florida, USA

49% Acquisition of

VNT, Ventspils, Latvia

90% acquisition and

expansion of

FTL, Fujairah, UAE

VTTI holding formed

ETT1 Commissioning

and ETT2 expansion

ETT, Rotterdam, NL

Construction begins on

LPG terminal

Navgas, Lagos,

Nigeria

2006 2007

Acquisition of

ETA, Amsterdam, NL

2008 2006 2007

OUR STORY SO FAR

Expansion works

FTL, Fujairah, UAE

Acquisition of

ATPC, Antwerp,

Belgium

Acquisition of

Mombasa Oil Terminal,

Kenya

Expansion works

ETT3, Rotterdam, NL

Agreement signed in

Vasiliko, Cyprus

Agreement signed in

Algeciras,Spain

Awarded project

between VTTI and

Summa

TEW, Rotterdam, NL

2009

Acquisition of 23% of

Petrotank/Germany

2010 2011 2009 2011

Gasoline expansion

completed

ETA, Amsterdam, NL

OUR GROWTH STRATEGY

To expand our network at the crossroads of major trading and shipping lanes:

• through Greenfield and Brownfield projects

• through expansion of our existing terminals

OUR APPROACH TO HEALTH SAFETY AND THE ENVIRONMENT

High HSE standards as a top priority: we’ve been able to put HSE into our DNA

OUR AMBITION

• To be in the Top 3 of global hydrocarbon terminal operators in with a capacity well exceeding 10 million cubic meters.

• To be number one in flexibility, speed, maneuverability and efficiency, able to comply with strict HSE requirements.

• To continue to offer a sustainable return to our shareholders

Euro Tank Terminal, a typical VTTI asset

EUROPEAN WATERWAYS

Oil & Container Cluster Chemical and Vegoil Cluster

Euro Tank Terminal

EUROPEAN WATERWAYS

ETT LOCATION

ETT OVERVIEW

ETT RECENT EXPANSION

ETT FUTURE DEVELOPMENTS

Operational Excellence in (ETT) Bulk Logistics

• Meeting highest HSE requirements

• Flexibility

• Speed: availability/peakability

• Efficiency

• Information

OPERATIONAL EXCELLENCE IN BULK LOGISTICS

• Meeting highest HSE requirements (1)


Contract Order Execution Planning

Ops.

GM

Techn CS

Shift

VTTA

m3

TP 3

83.100 GO

59.600 GO/JET

TP 4

119.200 JET

178.800 JET / GO

TP 2

147.000 FO/GO

TP 1

52.800 FO

GO 1

FO 1

GO 2 JET

FO 2

JET

Business Processes

• Meeting highest HSE requirements (2)

– Hardware: Design • According to local legislation & VTTI standards

• VTTI Standards, f.e.: independent overfill protection for all new builds

– Software: Maintain & Operating Procedures and Standards

• According to local legislation & ISO 9001, 14001, OSHAS 18001 & VTTI standards

• VTTI Standards, f.e.: Overfill protection standard

– Mindware: people with the right mind-set • Attract, develop and retain the right people

• Develop, f.e.: global roll-out of H&M program

• Develop, f.e.: use serious gaming as a tool to raise PSM awareness


• Flexibility – All modalities at 1 site: SGV’s, barges, RTC’s, RTT’s

and pipeline connection(s)

– Balance with costs and product segregation

– Ship/shore: smallest barge till largest ship

– MLA/piping: multi-product, piping dedicated

– Manifold: design for every berth to every tank

– Easy product changes: drainability piping and tanks

– People: when customer calls operation is changed within 5 minutes


• Speed: availability/peakability (1)

– Availability

• Berths

– # of berths versus business

– reduce turn around time

• Tanks

– RBI & M

– Pit stop strategy for tank turn arounds

– Peakability

• Design for 18 throughputs/year

– Berths

– Piping

– Pumps

– Tanks


• Speed: availability/peakability (2)

– Something changed in the marketplace (backwardation)!

– Extremely high throughputs

– Dramatic reduction in batchsize

– Customer expectation high we need to act!

– Descibe the (un-) loading process in detail and develop a set of

KPI’s to monitor and improve our (un-)loading performance

– Use the KPI’s in daily terminal meeting and as input for

contractor (surveyor!) and customer performance discussions

– Develop highly sophisticated terminal model to support our

investment decissions (with the help of Systems Navigator)


• Efficiency

– Design:

• VSD on pumps

• Sufficient isolation on fuel oil tanks/hot-oil system

• VTU with heat revovery

– Operate

• Maximize pump over by gravitational flow

• Check on isolation efficiency

• Extremely flat organization with a special role for the

all-round operator (ARO)


• Information

– Systems

• In house developed ERP+ system: TOMCAT with web

access

– People

• 24/7 customer services

• Highly skilled

• Aware that customer lives in a “minute world”


Q & A


THANK YOU FOR YOUR ATTENTION!

operational excellence in bulk logistics - platts · expansion works ftl, fujairah, uae ... –easy...

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